On January 1, 2017, Pluto Corp. acquired 8%, $100,000 par value bonds of Uranus Ltd., to yield 6%. The

bonds were dated January 1, 2017, and mature on December 31, 2021, with interest payable each January

1. Pluto intends to hold the bonds to maturity and collect all principal and interest payments to maturity. The

market value of the bond at December 31, 2017 was $109,000 and at December 31, 2018 was $107,000.

Pluto follows IFRS.

Required

Prepare the following entries in Pluto's books:

a)

Acquisition of bonds on January 1, 2017. (3 marks)

b)

Year-end adjusting entry at December 31, 2017. (3 marks)

C)

Receipt of the first interest payment on January 1, 2018. (2 marks)

d)

Year-end adjusting entry at December 31. 2018. (3 marks)

e)

f)

What is the SFP value for these bonds on December 31, 2017? (1 mark)

What is the additional journal entry at December 31, 2017 if Pluto classifies the bond as FVOCI? (3

marks)

Round all values to the nearest dollar.