Using the information from BE14- 24, prepare the journal entry to record the bond issue, assuming that Lee Equipment Company is an IFRS reporter.
BE14-24
Lee Equipment Company issued 200 eight- year, 6% convertible bonds for $ 227,200. Each bond had a par value of $ 1,000. Each $ 1,000 bond converts into eight shares of $ 1 par value common stock at the option of the bondholder beginning two years after the date of issue. The market price of the common stock on the purchase commitment date was equal to $ 120 per share and the market rate of interest was 6% at issuance. Prepare the journal entry to record the bond issue.