Question 6 (10 marks) On October 1, 2020, Angels Ltd. purchased a 8% bond with a face value of $ 15,000 for trading purposes, accounting for the investment at fair value through net income. The bond was purchased for $15,300 to yield 6%. The bond pays interest annually cach October 1. Angels has a December 31 year-end, and at this date, the bond's fair value was $ 15,759. Assume Angels applies IFRS and follows a policy of not reporting interest income separately from investment income. 1 Instructions a) Prepare Angels' entry for the purchase of the investment. (2 marks) b) Prepare Angels' entry for the December 31 interest accrual. (2 marks) c) Prepare Angels" entry for the year-end fair value adjustment. (3 marks) d) Prepare an amortization for this bond from Oct. 1, 2020 to Oct. 1, 2022 (3 marks) 7 8