Simple Minds made an investment in a €840,000 debt instrument, which was issued at par, on | January 2017. The debt instrument has a term of five years and a coupon rate of interest of 6.5%. Transaction costs amounted to €11,000. The effective rate of interest is 6.1875%. The debt instrument meets the criteria to be measured at amortised cost.

Requirement Prepare the journal entries to account for the above transaction for the year ended 31 December 2017.