he bonds early the next year. Interest is received semi-annually on July 1 and January 1. At December 31, 2021, which is the companys fiscal year end, the bonds were trading in the market at 98 (this means 98% of maturity value).

(a)

Using the fair value through profit or loss model, prepare the journal entry to record the purchase of the bonds on January 1. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)