On 1 January 20x2, Sapphire Co issued convertible bonds on the following terms: • Principal amount: $20,000,000 Proceeds: $25,000,000 Periods to maturity: 5 years Coupon interest payable on 31 December: 3% per annum • The effective interest rate for a pure bond issued by Sapphire Co without a conversion option is 5% per annum. Ignore taxes. Required a. Prepare the journal entries to record all relevant transactions for the year ended 31 December 20x2. b. If 30% of the bonds was converted on 31 December 20x2, show the journal entry to record the conversion. Issued share capital on conversion $7,594,02