Gresham Ltd. Issued $100,000 face value bonds on January 1, 2007 which will mature on December 31, 2011. Gresham has a December 31 fiscal year end. The bonds have a coupon rate of 7% per annum, interest payable on January 1, and were priced to yield 6% at issue date. On March 1, 2008, Gresham repurchased $20,000 face value of those bonds at 90 as it has idle funds and wished to improve the debt to equity ratio. Any accrued interest owing was paid at the tie of repurchase. (Assume IFRS).

Provide journal entries required by Gresham to record the issuance of the bonds, the entry required on December 31, 2007 and for the repurchase on March 1, 2008.