Question 4 On 1 January 2017, POK Limited acquired Bond A and cost of $848,369 to be recorded in the bond investment account. Bond A has a nominal value of $1,000,000, a coupon rate of 6% interest payable on 31 December each year and matures on 31 December 2021 at nominal value. The objective of the POK Limiteds business model is to hold the financial assets to collect the contractual cash flows. Bond A is carried at amortised cost. It is believed that the effective interest rate to be 10%. POK Limited has a year ended date of 31 December. Required: i) Prepare the amortization table for the Bond A from 1 January 2017 until 31 December 2021. (10 marks) ii) Prepare journal entries of the Bond A from 1 January 2017 until 31 December 2021. For any item that will be included in the statement of profit or loss and other comprehensive income, please indicate whether it is profit or loss item (P/L) or other comprehensive income item (OCI). (16 marks) Accounts: Bond Investment, Cash, Interest Revenue

Question 4 Part A i) Prepare the amortization table for the Bond A from 1 January 2017 until 31 December 2021. (10 marks) year Opening balance $ Interest income $ Interest receipt $ Closing balance $ 2017 2018 2019 2020 2021