On January 1, 2023, Swift Current Corporation paid $2,540,240 to acquire bonds of Jasper Investment Corp with a par value of $2,520,000. The annual contract rate on the bonds is 7% and interest is paid semiannually on June 30 and December 31. The bonds mature after three years. The market rate of interest was 6.7%. Swift Current Corporation intends to hold the bonds until maturity.

Required

1. Prepare an amortization schedule for the investment showing only 2023.

2. Prepare Swift Current’s entries to record 

(a) The purchase of the bonds, 

(b) The receipt of the first two interest payments.

3. Show how the investment will appear on the December 31, 2023, balance sheet.