On January 1, 2020, Riverbed Corp. acquires $324,000 of Spider Products Inc. 8% bonds at a price of $300,247. The interest is payable each December 31, and the bonds mature on December 31, 2022. The investment will provide Riverbed Corp. with a 11% yield. Riverbed Corp. applies IFRS and accounts for this investment using the amortized cost model.

Schedule of Interest Income and Bond Discount Amortization Effective Interest Method
Date		Cash Received		Interest Income		Bond Discount Amortization		Carrying Amount of Bonds
01/01/20								$enter a dollar amount rounded to 0 decimal places
12/31/20		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal places
12/31/21		enter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal places
12/31/22		enter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal places

Prepare the journal entry to record interest received and interest income on December 31, 2021. (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, 2021	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount

Prepare the journal entries to record interest received and interest income on December 31, 2022, 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, 2022	enter an account title to record collection of interest on December 31	enter a debit amount	enter a credit amount
	enter an account title to record collection of interest on December 31	enter a debit amount	enter a credit amount
	enter an account title to record collection of interest on December 31	enter a debit amount	enter a credit amount
	(To record collection of interest)
Dec 31, 2022	enter an account title to record maturity of bond investment on December 31	enter a debit amount	enter a credit amount
	enter an account title to record maturity of bond investment on December 31	enter a debit amount	enter a credit amount
	(To record maturity of bond investment)

List of Accounts

Prepare the entry for the disposal of the investment if Riverbed had sold the bond on December 31, 2021 for $283,200 instead of holding it to maturity. Assume that 2021 interest received and interest income have already been recorded. (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.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

List of Accounts

• Accumulated Other Comprehensive Income
• Allowance for Investment Impairment
• Bond Investment at Amortized Cost
• Cash
• Dividends Receivable
• Dividend Revenue
• FV-NI Investments
• FV-OCI Investments
• Gain on Disposal of Investments in Associate
• Gain on Disposal of Investments - Cost/Amortized Cost
• Gain on Disposal of Investments - FV-NI
• Gain on Disposal of Investments - FV-OCI
• Gain or Loss in Value of Investment Property
• GST Receivable
• Interest Expense
• Interest Income
• Interest Payable
• Interest Receivable
• Investment in Associate
• Investment Income or Loss
• Loss on Discontinued Operations
• Loss on Disposal of Investments - Cost/Amortized Cost
• Loss on Disposal of Investments - FV-NI
• Loss on Disposal of Investments - FV-OCI
• Loss on Impairment
• No Entry
• Note Investment at Amortized Cost
• Other Investments
• Recovery of Loss from Impairment
• Retained Earnings
• Unrealized Gain or Loss
• Unrealized Gain or Loss - OCI