Problem 2 (10 Points)Convertible bonds and share warrants. For each of the unrelated transactions described below, present the entry(ies) required to record the bond transactions. 1. On August 1, 2021, Longevity Co. called its 10% convertible bonds for conversion. The 7,000,000 par bonds were converted into 320,000 shares of 20 par ordinary shares. On August 1, there was 500,000 of unamortized discount applicable to the bonds. The Share Premium-Conversion Equity account had a balance of 400,000. The fair value of the ordinary shares was 25 per share. Ignore all interest payments. . Peace Co. decides to issue convertible bonds instead of ordinary shares. The company issues 10% convertible bonds, par 4,000,000, at 97. The investment banker indicates that if the bonds had not been convertible they would have sold at 94. 2. 3. Glory Co. issues 5,000,000 of bonds with a coupon rate of 8%. To help the sale, detachable share warrants are issued at the rate of ten warrants for each 1,000 bond sold. It is estimated that the fair value of the bonds without the warrants is 4,935,000. The bonds with the warrants sold at 101