Northpoint Ltd is a manufacturing company that makes loans to other parties from time to time. The loan assets are classified by Northpoint Ltd as subsequently measured at amortised cost. Northpoint Ltd does not apply the simplified approach to impairment of loans receivable. On 1 July 2024, Northpoint Ltd made the following loans which were classified as remaining at Stage 1 for impairment throughout the term of the loans.

(a) A 3-year loan of $1 million to East Ltd at an interest rate of 15% p.a. due annually in arrears on 30 June each year. East Ltd incurred transaction costs of $97 749 in respect of this loan to arrange charges for security. Northpoint Ltd estimates 12-months expected credit loss as $30 000 throughout the term of the loan and the lifetime expected credit loss as $45 000 and $30 000 at 30 June 2025 and 30 June 2026 respectively.

(b) A 3-year loan of $1 million to West Ltd at an interest rate of 10% p.a. with interest due only on settlement at 30 June 2024. Northpoint Ltd estimates 12-months expected credit loss as $40 000. The estimated lifetime expected credit loss was $60 000 and $40 000 at 30 June 2025 and 30 June 2026 respectively.

Required: Prepare the entries of Northpoint Ltd to account for the loans from initial recognition on 1 July 2024 to derecognition on 30 June 2027, assuming loans are fully paid on maturity. (LO14)