On January 1, 2020, XYZ Co. purchased $90,000,000 in 7% bonds that will mature in 5 years. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity, the market yield was 5%. Interest is received semiannually on June 30 and December 31. XYZ Co. follows IFRS. Prepare journal entries for the following transactions. Please make sure your final answer(s) are accurate to the nearest whole number. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). a) Prepare the journal entry to record XYZ Co.'s investment on January 1, 2020.

Marking: You have not included the 'Investments, held to maturity' account in this journal entry. This will cost you 2 marks. 'Cash' should be credited for the amount of $97,876,858, but you have not done this. This will cost you 1 mark. 'Investments in bonds, amortized cost' should not have been included in this journal entry. Any amounts entered for this account will not be evaluated.

Please show how $97,876,858 would have been calculated.

\begin{tabular}{||c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ General Journal } & \multicolumn{2}{c|}{ Page G1 } \\ \hline Date & Account/Explanation & PR & Debit & Credit \\ \hline 1/Jan & Investmentsinbonds,amortizedcostCash........................................................recordpurchaseofbonds & 90,000,000 & \\ \hline \end{tabular}