On January $1,2020$ Alpha Ltd$.$ invested $$906,149$ in bonds with a face value of $$1,000,000,$ with

a nominal interest rate of $6\%,$ and semi$-$annual interest payments on June $30$ and December $31$

each year. The market rate of interest was $8\%$ on January $1,2020$ and the bonds were set to

mature in $6$ years. The bonds had a market value of $$990,000$ on December $31,2020.$ Alpha

Ltd$.$ uses IFRS.

Required

a$)$ Using the Amortized Cost model, prepare all journal entries required on December $31,$

$2020.$

b$)$ Using the Fair Value through Net Income model, prepare all journal entries required on

December $31,2020.$

Please answer correctly