New Orders Ltd (NOL) is a retailer of electronics appliances operating in Hong Kong. During its financial year ended 28 February 2021 (with issue date on 5 March 2021), the following transactions have taken place: (iii) Financial guarantee contract On 1 March 2020, NOL issued a financial guarantee contract to Golden Trust Bank (GT) with an obligation to ensure that GT can retrieve interests and redemption value from its debtor of a 3-year loan with face value of $1 million. NOL received a premium of $150,000 from GTs debtor (an unrelated party of NOL) on the same date for its service provided over the 3-year period. As at 28 February 2021, there is a significant increase in credit risk and the lifetime expected credit loss allowance is $108,000. No journal entries have done so far for this contract. Required (a) Discuss how each of the above events should account for in the financial statement of NOL for the year ended 28 February 2021 with reference to relevant HKFRSs. (b) Prepare necessary journal entries (or correction journal entries) of each of these events for NOL for the year ended 28 February 2021.