The following amortization schedule is for Flagg Ltd's investment in Spangler Corp's $100,000, five-year bonds with a 7% interest rate and a 5% yield, which were purchased on December 31, 2019, for $108,660: Cash Received Interest Income Bond Premium Amortized Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Dec. 31.2022 Dec 31, 2023 Dec 31, 2024 $7,000 7.000 7.000 7.000 7.000 $5,433 5.355 5.272 5.186 5.095 $1,567 1,645 1.728 1,814 1,906 Amortized Cost of Bonds $108,660 107.093 105,448 103.720 101.906 100.000 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 $105,448 Dec. 31.2022 $103.720 Dec. 31.2023 $101.906 Dec 31, 2024 $100.000 Amortized cost $107.093 Amortized cost Fair value Dec 31, 2020 $107.093 $106,501 Dec 31, 2021 $105,448 $107,501 Dec 31, 2022 $103.720 $105,651 Dec 31, 2023 $101,906 $103,001 Dec 31, 2024 $100,000 $100,000 Assume that Flagg 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 accour using the amortized cost model. (Credit account titles are automatically indented when the amount is entered. Do not indent If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Credit Date Debit Account Titles and Explanation Dec. 31 - 74 Prepare the journal entry related to the bonds accounted for using the amortized cost mofon (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is requirea, sciect "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31 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 for the amounts.) Debit Credit RULULIUITUD -14 List of Accounts Prepare the journal entry related to the bonds accounted for using the amortized cost model for 2022. (Credit account titles au 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 for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31 List of Accounts o search Prepare the journal entry to record the purchase of these bonas, assung de, 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 for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31 List of Accounts Prepare the journal entryles) related to the trading bonds accounted for using the FV-Ni model for 2021. (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 o for the amounts:) Credit Debit Titles and Explanation Prepare the journal entry(ies) related to the trading bonds accounted for using the FV-Nl model for 2021. (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 for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31 (To record collection of interest) Dec. 31 (To record fair valde adjustment) List of Accounts Prepare the journal entry(ies) related to the bonds accounted for using the FV-Ni model for 2023. (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 for the amounts.) Credit Date Debit Account Titles and Explanation Dec. 31 (To record collection of interest) Dec. 31 (To record fair value adjustment) Accounts
