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

BondPriceAmount purchasedGlobal Filter Corp. 12% bonds, maturity date December 31, 2019114.5

440000

Weber Inc. 8% bonds, maturity date, December 31, 202396500000

Both bonds pay interest annually on December 31. Premium and discount will be amortized on an effective interest basis. Assume a market rate of 9% and Star Inc. 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: a. The acquisition of the investments. Accrued interest was paid on the acquisition dates, as appropriate. b. The receipt of interest and the amortization of the premium or discount for Global Filter Corp. c. The receipt of interest and the amortization of the premium or discount for Weber Inc. 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).

Here is the correct journal entries

a.

Dr. Investments, Global Filter Corp. bonds 503,800 Dr. Investments, Weber Inc. bonds 480,000 Dr. Interest receivable 46,400 Cr. Cash 1,030,200

b.

Dr. Cash 52,800 Cr. Interest receivable 26,400 Cr. Investments, Global Filter Corp. bonds 3,729 Cr. Interest income 22,671

c.

Dr. Cash 40,000 Cr. Interest receivable 20,000 Dr. Investments, Weber Inc. bonds 1,600 Cr. Interest income 21,600

Question is :

Could you please provide a detailed explanation of the journal entries, including a step-by-step breakdown of the process? It would be immensely helpful if you could clarify how the specific amounts in these entries are determined and provide the calculations for each of these amounts. (i will upvote)