Maura plc has a debt instrument that has a redemption value of 50,000, which will be repaid in five years. The interest is 6% per year payable annually in arrears at the 30 September each year. There are no other cashflows from the instrument. Maura purchases the instrument on 30 September 2020 for 46,700. The effective interest rate of the investment in the instrument is approximately 7.65%. Maura's financial year end is 31 December.

The fair values of the debt instrument are:

Date	Fair value
31 December 2020	46,700
31 December 2021	45,000
31 December 2022	51,000
31 December 2023	46,000
31 December 2024	52,000

Required:

a) The business model of Maura is to hold debt assets to collect their contractual cash flows. Complete the calculations and journals (text and numbers) to recognise this instrument in the financial statements of Maura plc.

b) Curtis buys a 2.5% bond for 411,225 on 30 June 2020. The bond has a par value of 400,000. Interest payments are in arrears. The bond has a redemption value of 440,000 in six years. The effective interest rate of the bond is approximately 3.5%. Cashflows of the bond are solely principal and interest. Curtis has a year end of 31 December.

Assuming the business model of Curtis is to hold financial assets to collect contractual cashflows, complete the calculations and journals (text and numbers) to recognise this bond in the 2020 financial statements of Curtis.