7 On January 1, 2017, Ayayai Corp. acquires $300,000 of Spider Products, Inc. 7% bonds at a price of $284,812. The interest is payable each December 31, and the bonds mature on December 31, 2019. The investment will provide Ayayai Corp. with a 9% yield. Ayayai Corp. applies IFRS and accounts for this investment using the amortized cost model. (a) Prepare a three-year bond amortization schedule. (Round answers to 0 decimal places, e.g. 5,275.) Date Cash Received Schedule of Interest Income and Bond Discount Amortization Effective Interest Method Interest Income Bond Discount Amortization Carrying Amount of Bonds 01/01/17 12/31/17 12/31/18 12/31/19 Prepare the journal entry to record interest received and interest income on December 31, 2018. (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. Round answers to 0 decimal places, e.g. 5,275.) Date Dec 31, 2018 Account Titles and Explanation Debit Credit Prepare the journal entries to record interest received and interest income on December 31, 2019, and the maturity of the bond. (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. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec 31, 2019 Dec 31, 2019 (To record the receipt of the interest payment) (To record proceeds on maturity) Prepare the journal entry to record interest received and interest income on December 31, 2018. (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. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Dec 31, 2018 Debit Credit