= Homework: Week Two Question 3, BE16-4 (similar to) Part 1 of 2 HW Score: 26.47%, 5.82 of 22 points Points: 0 of 1 Save Davies Products, an IFRS reporter, acquired $2,150,000 face value, 6% bonds on January 1 of the current year when the market rate of interest was 9%. Davies plans to hold the bonds to generate cash flows by collecting contractual cash flows only and it passes the SPPI test. Interest is paid annually each December 31. Davies purchased the bonds, which mature in nine years, for $1,763,307. Davies amortizes the discount using the effective interest method. The fair value of the bonds at the end of the year is $1,638,707. Prepare the journal entries required on the date of acquisition and at the end of the first year after acquisition. Prepare the journal entry required on the date of acquisition. (Record debits first, then credits. Exclude explanations from any journal entries. Abbreviation used: FVOCI = fair value through other comprehensive income.) January 1, current year Account