Make the journal entries for issue of the convertible notes

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Undecided Ltd issued 100,000 convertible notes on 1 January 2021. The notes have a four-year term and were issued at par with a face value of $10 per note, giving total proceeds of $1,000,000. Interest is payable annually in arrears at a nominal interest rate of 8% per annum. Each note is convertible into one ordinary share at or prior to maturity. The prevailing market interest rate at issue was 10% per annum.

Problem 1: Make the journal entries for the issue of the convertible notes and the payment of interest at the following dates:

I 1 January 2021
II 31 December 2021
III 31 December 2022

Reference no: EM133007273

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