Prepare the journal entry that olga should record

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Question: On December 31, 2019, OLGA Inc. sold convertible bonds to Nuttin Corp. for $38,375,000. The bonds have a face value of $40,000,000, a term of 10 years and coupon payments each June 30 and December 31 at 5% per annum. The yield to maturity on similar bonds without the conversion feature is 6%. The bonds are nconvertible into 10 common shares for each $1,000 bond. OLGA Inc. reports under IFRS.

Required: Prepare the journal entry that OLGA Inc. should record for the issuance of these bonds at December 31, 2019.

Reference no: EM132743663

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