On July 1, 2015, Northstar Corp. acquired the following bonds, which Northstar Corp. intended to hold to maturity:

BondPriceFace Amount PurchasedVision Consulting Inc. 9% bonds, maturity date December 31, 2021107.5$385,000Oppong Corporation 7% bonds, maturity date, December 31, 202097.8350,000

Both bonds pay interest annually on December 31. Premium and discount will be amortized on an effective interest basis. Assume a market rate of 8% and Northstar Corp. follows IFRS. Please make sure your final answer(s) are accurate to 2 decimal places.

1) Prepare the following journal entries to be made on their correct dates in 2015:

1. The acquisition of the investments. Accrued interest was paid on the acquisition dates, as appropriate.
2. The receipt of interest and the amortization of the premium or discount for Vision Consulting Inc.
3. The receipt of interest and the amortization of the premium or discount for Oppong Corporation.

Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan).

General JournalPage G7DateAccount/ExplanationPRDebitCredit

2) Show the accounts and the corresponding amounts that would be reported in the 2015 income statement related to these investments.

2015

3) Calculate the balance for each investment account on the financial statement date.

2015