Ayayai Corp. invested in a three$-$year, $$100$ face value, $6\%$ bond paying $$108\mathrm{.}49.$ At this price, the bond will yield a $3\%$ return.

Interest is payable annually. Ayayai uses the amortized cost model of accounting for investments.

$($a$)$

Prepare a bond premium amortization table for Ayayai, assuming Ayayai uses the effective interest method required by IFRS.

$($Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$

$($b$)$

Prepare journal entries to record the initial investment, receipt of interest, and recognition of interest income in each of the three years, and the maturity of the bond at the end of the third year. $($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. List all debit entries before credit entries. Round answers to $2$ decimal places, e$.$g$.$

$52\mathrm{.}75.)$

$($c$)$

Assuming Grouper applies ASPE and has chosen to use the straight$-$line method of amortization, determine the amount of discount that is amortized each year. $($Round answer to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$

Straight$-$line discount amortization

$$ each year

$($d$)$

Under the above assumption, prepare journal entries to record the initial investment, receipt of interest, and recognition of interest income in each of the three years, and the maturity of the bond at the end of the third year. $($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. Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$