Check Saved my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indica Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes. Izmir A.S. issued convertible bonds at their face value of 128,000 lira on December 31, 2020. The bonds have a 10-year life with interest of 14 percent payable annually. At the date of issue, the prevailing interest rate for similar debt without a conversion option was 16 percent. Required: a. Prepare journal entries for this compound financial instrument for the year ending December 31, 2020, under (1) IFRS and (2) U.S. GAAP b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2020, conversion worksheet to convert IFRS balances to U.S. GAAP. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries for this compound financial instrument for the year ending December 31, 2020, under (1) IFRS and (2) U.S. GAAP. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round PV factor to 7 decimals. Round your intermediate and final answers to nearest whole dollar.) No 1 Date 12/31/2020 Cash Bonds payable General Journal Additional paid-in capital - Convertible bonds Debit Credit 128,000 ( 93,100 20,480 < Prev 1 of 5 Next >