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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 Amortized Cost of Bonds Dec 31, 2019 $108,660 Dec. 31, 2020 $7,000 $5,433 $1,567 107.093 Dec 31, 2021 7.000 5,355 1.645 105448 Dec.31.2022 7,000 5,272 1.728 103,720 7.000 Dec 31, 2023 5,186 1,814 101.906 7,000 5,095 1,906 Dec. 31.2024 100,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year end: Dec 31, 2023 Dec 31, 2024 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 $107,093 $101,906 $100,000 $103.720 $105,448 Amortized cost $103.001 $100,000 $105,651 $106.501 $107.501 Fair value MC Motly cloudy 0. Dec 31, 2023 7.000 5.186 1,814 101,906 Dec 31, 2024 7.000 5,095 1,906 100,000 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 Dec. 31, 2022 Dec. 31, 2023 Dec 31, 2024 Amortized cost $107,093 $105,448 $103.720 $101,906 $100,000 Fair value $106,501 $107.501 $105,651 $103.001 $100,000 Assume that Flagg Ltd. follows IFRS and reports interest income separately from other investment income. 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 O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record collection of interest) Dec. 31 (To record fair value adjustment)

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