On March $31,$ Ramesh Corp. invests in a $$1,000,6\%$ bond to be held for short$-$term trading purposes and accounts for this investment using the FV$-$NI method. The effective yield of the bond is $6\mathrm{.}5\%.$ The bond's fair value when acquired was $$970,$ but an additional $$10$ was paid $($and debited to Interest Receivable$)$ representing the interest accrued since the annual interest payment date of February $1.$ Ramesh applies IFRS and prepares financial statements each December $31.$ The fair value of the bond on December $31$ is $$963$ and on February $1,$ when Ramesh sells the bond, it is $$961.$Your answer is incorrect.

Prepare journal entry to record the receipt of interest on February $1.($Round answers to $0$ decimal places, e$.$g$.5,275.$ 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. List all debit entries before credit entries.$)$

Date Account Titles and Explanation

Feb. $1$ Interest Income

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List of Accounts

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