On 1 October 2020, Merci invested in a 1 year bond as part of cash management policy On that date the bond was accurately recorded as a financial asset under AASB 9 Financial Instruments After initial recognition, no transaction was recorded subsequently The bond details are as follows Purchase Price $181,000 (Face value$180,000) Classification Fair Value through other comprehensive income( FVTOCI) Credit impaired No Interest Paid Quarterly 1 st payment received 31 December 2020 5 coupon interest rate per annum Effective interest rate 4 43 per annum Fair Value As at 31 December 2020 $177,000 Expected credit losses 12 month expected credit losses were determined to be $1,000 There has been no significant increase in credit risk in the bond as at 31 December 2020 Required Prepare the three journal entries for the subsequent transactions for the year ended 31 12 20 (Narrations are required) (Rounded to the nearest whole $) ( 10 marks)

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On 1 October 2020, Merci invested in a 1 year bond as part of cash management policy. On that date the bond was accurately recorded

On 1 October 2020, Merci invested in a 1 year bond as part of cash management policy. On that date the bond was accurately recorded as a financial asset under AASB 9 Financial Instruments. After initial recognition, no transaction was recorded subsequently. The bond details are as follows:

Purchase Price	$181,000 (Face value$180,000)
Classification	Fair Value through other comprehensive income( FVTOCI)
Credit impaired?	No
Interest	Paid Quarterly 1^st payment received 31 December 2020 5% coupon interest rate per annum Effective interest rate 4.43% per annum
Fair Value	As at 31 December 2020 $177,000
Expected credit losses	12-month expected credit losses were determined to be $1,000 There has been no significant increase in credit risk in the bond as at 31 December 2020;

Required

Prepare the three journal entries for the subsequent transactions for the year ended 31.12.20 (Narrations are required). (Rounded to the nearest whole $) ( 10 marks)