On January 1, 2017 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 19, 2019. The investment will provide Phantom Corp with a 12% yield. Phantom Corp applies IFRS and accounts for this investment using the amortized cost model.

Instructions:

Prepare a three year bond amortization schedule, rounding to the nearest dollar.

Prepare the journal entry to record interest received and interest income on December 31, 2018

Prepare the journal entries to record interest received and interest income on December 19, 2019 and the maturity of the bond

Prepare the entry for disposal of the investment if Phantom had sold the bond on December 31, 2018 for $285 270 instead of holding it to maturity. Assume that the 2018 interest received and interest income have already been recorded