Ex 9-4 Pg 9-56 On January 1, 2020, Phantom Corp. acquires $300,000 of Spider Products Inc. 9% bonds at a price of $278,384. The interest is payable each December 31, and the bonds mature on December 31, 2022. The investment will pr Phantom Corp. applies IFRS and accounts for this investment using the amortized cost model. Instructions a. Prepare the journal entry to record the bond purchase. b. Prepare a three-year bond amortization schedule, rounding to the nearest dollar. c. Prepare the journal entry to record interest received and interest income on December 31, every year. d. Prepare the journal entries to record interest received and interest income on December 31, 2022, and the ma Solution : Discount: Bond rate 9% = Market rate 12% a). Prepare the journal entry to record the bond purchase. 1/1/2020 Dr.Bond Investment at Amortized Cost Cr.Cash b. Prepare a three-year bond amortization schedule, rounding to the nearest dollar. Stated Market 9% 12% Difference Cash Interest Discount Amortized Cost Date Received Income Amortization of Bonds 1/1/202 12/31/2020 12/31/2021 12/31/2022 The amount should be c. Prepare the journal entry to record interest received and interest income on December 31, every year. 12/31/2020 Dr.Cash Dr. Bond Investment at Amortized Cost Cr.Interest Income 12/31/2021 Dr.Cash Dr. Bond Investment at Amortized Cost Interest Income 12/31/2022 Dr. Cash Dr. Bond Investment at Amortized Cost