JMR Ltd.sold $350,000 of 5% (annual interest payments)convertible 5 year bonds at par.The market interest rate on the sale date was 7%.Each $1,000 bond was convertible into 20 shares of KER Ltd.no-par value common shares on any interest date after the end of the first year from the date of issuance.Using IFRS,prepare the journal entry at issuance using the proportional method.Assume that the option pricing model placed a value of $73,675 for the conversion feature.

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The Answer of JMR Ltd.sold $350,000 of 5% (annual interest payments)convertible 5 year bonds at par.The market interest rate on the sale date was 7%.Each $1,000 bond was convertible into 20 shares of KER Ltd.no-par value common shares on any interest date after the end of the first year from the date of issuance.Using IFRS,prepare the journal entry at issuance using the proportional method.Assume that the option pricing model placed a value of $73,675 for the conversion feature.

JMR LtdSold $350,000 of 5% (Annual Interest Payments)convertible 5 Year Bonds