Entity A is listed in Hong Kong. It is a toy manufacturer which commenced its business more than thirty years ago.

On $1$ July $2021,$ Entity A bought a $$7,500,0006\mathrm{.}25\%$ bond for $$7,895,000.$ It also incurred an issue cost of $$23,500.$ Entity A paid the bond price

by a direct bank transfer on the purchase date. The issue cost was settled on $16$ July $2021.$ Fixed interest is received in arrears. The bond will be

redeemed at par or premium or discount over its face value on $30$ June $2024.$

Entity A intended to hold the bond until maturity. The fair value option was not elected at the initial recognition.

The fair values of the bond were as follows:

$30$ June $2022$$$7,398,000$

$30$ June $2023$$$6,356,000$

$30$ November $2023$$$7,325,000$

$31$ December $2023$$$7,335,000$

$30$ June $2024$$$7,436,540$

The effective interest rate is $8\mathrm{.}75\%.$ The market environment is stable and credit risk$-$free. The end of the reporting period is $30$ June.

REQUIRED:

According to relevant accounting standards, prepare journal entries to recognise the transactions of Entity A from $1$ July $2021$ to $30$ June $2024.$

ACCOUNTS FOR INPUT:

$|$ Financial asset $($Amortised Cost$)|$ Financial asset $($FVTPL$)|$ Financial asset $($FVTOCI$)|$

$|$ Financial liability $|$ Equity instrument $|$ Transaction cost $|$ Bank $|$ Loss allowance $|$ Impairment loss $|$ Reversal of impairment loss $|$

$|$ Gain on remeasurement $($P$/$L$)|$ Loss on remeasurement $($P$/$L$)|$ Gain on remeasurement $($OCI$)|$ Loss on remeasurement $(OCI)|$

$|$ Payable $|$ Receivable $|$ Other income $|$ Other expense $|$ Reclassification $($P$/$L$)|$ Reclassification $($OCI$)|$

$|$ Interest expense $|$ Interest revenue $|$ Loss on disposal $|$ Gain on disposal $|$ Retained earnings $|$ No entry $|$

ANSWERS:

Journal Entries:

Date

$1-$Jul$-2021$

$16-$Jul$-2021$

$30-$Jun$-2022$

$30-$Jun$-2023$

$30-$Jun$-2024$

$30-$Jun$-2024$

Account Name

Debit $($$$).$

Hints For Sequence

Non$-$Asset. Judge Dr$/$Cr$.$

Judge Dr$/$Cr$.$

Non$-$Income. Judge Dr$/$Cr$.$

Non$-$Income. Judge Dr$/$Cr$.$

Non$-$Income. Judge Dr$/$C

Judge Dr$/$Cr$.$