On January 1, 2019, Shenzhen ltd. Issued a 10% convertible bond at par, with a face value $100,000 maturing January 1, 2029. The bond is convertible into ordinary shares of Shenzhen a conversion price of $2,500 per share. Interest is payable annually at the date of the issued. Shenzhen could have issued at par non-convertible debt with a 10-year term bearing an interest rate of 11%
-Prepare the journal entry to record the issuance of the convertible debt on January 1, 2019
-On January 1, 2022. Shenzhen makes a tender offer to the holder accepts. At the date of repurchase the bond for $112,000, which the holder accepts. At the date of repurchase. Shenzhen could have issued non-convertible debt with a 7- year term at an effective-interest rate of 8% prepare the journal entry to record this repurchase on January 1, 2022.