Brief Exercise 16-14 Your answer is partially correct. Try again. Sunland Capital Ltd. issued 800 $1,000 bonds at 107. Each bond was issued with 10 detachable stock warrants. After issuance, similar bonds were sold at 101, and the warrants had a fair value of $1.50. Assume that Sunland Capital Ltd. follows IFRS and recorded the issuance of the bonds and warrants accordingly. On a date when the bonds had a carrying value of $490,700, Bantry paid $15,000 to the bondholders to induce early conversion. Record the conversion using the book value method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Compensation Expense Bonds Payable 15000 Compensation Expense Contributed Surplus - Stock Options 490700 Cash Common Shares 800000 SHOW LIST OF ACCOUNTS Brief Exercise 16-14 Your answer is partially correct. Try again. Sunland Capital Ltd. issued 800 $1,000 bonds at 107. Each bond was issued with 10 detachable stock warrants. After issuance, similar bonds were sold at 101, and the warrants had a fair value of $1.50. Assume that Sunland Capital Ltd. follows IFRS and recorded the issuance of the bonds and warrants accordingly. On a date when the bonds had a carrying value of $490,700, Bantry paid $15,000 to the bondholders to induce early conversion. Record the conversion using the book value method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Compensation Expense Bonds Payable 15000 Compensation Expense Contributed Surplus - Stock Options 490700 Cash Common Shares 800000 SHOW LIST OF ACCOUNTS