QUESTION 2 (the question is adapted from 2019SC exam) On 1 January 2019, Morningstar Ltd purchased some corporate bonds for cash consideration of $900,508 (including transaction costs). The following information is related to the bonds contract: The bonds have a contract term of three years. The bonds have a principal amount of $1,000,000, which will be paid back to Morningstar Ltd 3 years later, on 31 December 2021. The bonds offer a coupon rate of 6% p.a., payable to Morningstar Ltd at the end of each calendar year, in the next 3 years. The effective interest rate is 10% p.a. Morningstar Ltd has classified the financial asset (corporate bonds) as subsequent measurement at amortised cost. In accordance with NZ IFRS 9, prepare the journal entries related to the corporate bonds during the three-year contract term using amortised cost, show all workings clearly. Specifically, (i) the initial recognition of the corporate bonds on 1 January 2019; the subsequent measurement of the corporate bonds at the end of each year; and (iii) the receipt of the principal amount on 31 December 2021. (8 marks)