On 1 July 2020, Kitshoff Ltd issues 5,000 convertible notes. The notes have a three-year term and are issued at par with a face value of $4,000 per note, giving total proceeds at the date of issue of $20 million. The notes pay a coupon of 5% p.a. annually in arrears (payable 30/6). The holder of each note has the option to convert the note into 500 ordinary shares of Kishoff Ltd at the end of three years. When the notes are issued, the market interest rate for similar debt (similar term, similar credit status of issuer and similar cash flows) without conversion options is 8% p.a. Required Prepare the journal entries for Kitshoff to record this transaction on 1. 1 July 2020 when the convertible note is issued 2. 30 June 2021 when first coupon is payable