The following amortization schedule is for Ayayai Ltd s investment in Spangler Corp s $101,000, five year bonds with a 8 interest rate and a 6 yield, which were purchased on December 31, 2019, for $109,509 Cash Received Interest Income Bond Premium Amortized Amortized Cost of Bonds Dec 31, 2019 $109,509 Dec 31, 2020 $8,080 $6,571 $1,509 108,000 Dec 31, 2021 8,080 6,480 1,600 106,400 Dec 31, 2022 8,080 6,384 1,696 104,704 Dec 31, 2023 8,080 6,282 1,798 102,906 Dec 31, 2024 8,080 6,174 1,906 101,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year end Dec 31, 2020 Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Amortized cost $108,000 $106,400 $104,704 $102,906 $101,000 Fair value $107,207 $108,553 $106,585 $103,701 $101,000 Assume that Ayayai Ltd follows IFRS and reports interest income separately from other investment income Prepare the journal entry to record the purchase of these bonds on December 31, 2019, assuming the bonds are accounted for using the amortized cost model (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Date Account Titles and Explanation Debit Credit Dec 31 SHOW LIST OF ACCOUNTS Prepare the journal entry related to the bonds accounted for using the amortized cost model for 2020 (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Date Account Titles and Explanation Debit Credit Dec 31 SHOW LIST OF ACCOUNTS Prepare the journal entry related to the bonds accounted for using the amortized cost model for 2022 (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Date Account Titles and Explanation Debit Credit Dec 31 SHOW LIST OF ACCOUNTS Prepare the journal entry to record the purchase of these bonds, assuming they are held for trading purposes and accounted for using the FV NI model (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Date Account Titles and Explanation Debit Credit Dec 31

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The following amortization schedule is for Ayayai Ltd.s investment in Spangler Corp.s $101,000, five-year bonds with a 8% interest rate and a 6% yield, which

The following amortization schedule is for Ayayai Ltd.s investment in Spangler Corp.s $101,000, five-year bonds with a 8% interest rate and a 6% yield, which were purchased on December 31, 2019, for $109,509:

	Cash Received	Interest Income	Bond Premium Amortized	Amortized Cost of Bonds
Dec. 31, 2019				$109,509
Dec. 31, 2020	$8,080	$6,571	$1,509	108,000
Dec. 31, 2021	8,080	6,480	1,600	106,400
Dec. 31, 2022	8,080	6,384	1,696	104,704
Dec. 31, 2023	8,080	6,282	1,798	102,906
Dec. 31, 2024	8,080	6,174	1,906	101,000

The following schedule presents a comparison of the amortized cost and fair value of the bonds at year end:

	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2024
Amortized cost	$108,000	$106,400	$104,704	$102,906	$101,000
Fair value	$107,207	$108,553	$106,585	$103,701	$101,000

Assume that Ayayai Ltd. follows IFRS and reports interest income separately from other investment income.

Prepare the journal entry to record the purchase of these bonds on December 31, 2019, assuming the bonds are accounted for using the amortized cost model. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31

SHOW LIST OF ACCOUNTS

Prepare the journal entry related to the bonds accounted for using the amortized cost model for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31

SHOW LIST OF ACCOUNTS

Prepare the journal entry related to the bonds accounted for using the amortized cost model for 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31

SHOW LIST OF ACCOUNTS

Prepare the journal entry to record the purchase of these bonds, assuming they are held for trading purposes and accounted for using the FV-NI model. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)