On 1 January 20X4, Eledant Inc. issued a $9,000,000, 3-year bond that pays 7.5% for $9,400,000. The bond pays interest on 31 December each year. At the end of the term each bond can, at the holders’ option, be repaid in cash or converted to 30 common shares. Comparable bonds without the conversion option have a market rate of 9%. Eledant follows IFRS.

Required:
1. Prepare the journal entry to record the issuance of the bond in 20X4.
2. Prepare the journal entry at maturity, assuming:
a. The bond was retired for cash.
b. The bond was converted to shares.
3. Prepare the journal entry to record the initial issuance of the bond under ASPE. Identify the differences from IFRS in how the bond is accounted for initially and subsequently.