Brief Exercise 9-4 Bramble Corp. invested in a three-year, $100 face value 9% bond, paying $95.12....

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Brief Exercise 9-4 Bramble Corp. invested in a three-year, $100 face value 9% bond, paying $95.12. At this price, the bond will yield a 11% return. Interest is payable annually. Your answer is correct. Prepare a bond discount amortization table for Bramble Corp., assuming Bramble uses the effective interest method required by IFRS. (Round answers to 2 decimal places, e.g. 52.75.) Date Cash Received Day 1 End Year 1 End Year 2 End Year 3 ✔ LINK TO TEXT ✔ ✓ T Bond Discount Amortization Table Interest Income Bond Discount Amortization ✓ |v SHOW LIST OF ACCOUNTS SHOW SOLUTION 10.46 10.62 10.80 31.88 |✓ 1.46 1.62 1.80 4.88 Amortized Cost of Bond ✓ 95.12 96.58 98.2 100 x Your answer is incorrect. Try again. Assuming Bramble Corp. applies ASPE and has chosen to use the straight-line method of amortization, determine the amount of discount that is amortized each year. (Round answer to 2 decimal places, e.g. 52.75.) Straight-line discount amortization $ 1.85 each year Under the above assumption, prepare journal entries to record the initial investment, receipt of interest, and recognition of interest income in each of the three years, and the maturity of the bond at the end of the third year. (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 2 decimal places, e.g. 52.75.) Account Titles and Explanation Date Day 1 End of Year 1 Bond Investment at Amortized Cost ✓ ✓ Cash Cash Bond Investment at Amortized Cost ✓ End of Year 2 Cash Interest Income ✓ Bond Investment at Amortized Cost Interest Income ✔ End of Year 3 Cash Bond Investment at Amortized Cost Bond Inve at Amortized Cost Interest Income (To record interest) ✓ ✓ ✓ Debit 95.12 1.62 9 1. 9 1.62 √✓ ✓ √✓ Credit 95.12 10.62 10.62 10.62 x Your answer is incorrect. Try again. Calculate the total interest income under the two methods over the three-year period. (Round answers to 2 decimal places, e.g. 52.75.) Effective interest method Straight line method 10.85 Brief Exercise 9-4 Bramble Corp. invested in a three-year, $100 face value 9% bond, paying $95.12. At this price, the bond will yield a 11% return. Interest is payable annually. Your answer is correct. Prepare a bond discount amortization table for Bramble Corp., assuming Bramble uses the effective interest method required by IFRS. (Round answers to 2 decimal places, e.g. 52.75.) Date Cash Received Day 1 End Year 1 End Year 2 End Year 3 ✔ LINK TO TEXT ✔ ✓ T Bond Discount Amortization Table Interest Income Bond Discount Amortization ✓ |v SHOW LIST OF ACCOUNTS SHOW SOLUTION 10.46 10.62 10.80 31.88 |✓ 1.46 1.62 1.80 4.88 Amortized Cost of Bond ✓ 95.12 96.58 98.2 100 x Your answer is incorrect. Try again. Assuming Bramble Corp. applies ASPE and has chosen to use the straight-line method of amortization, determine the amount of discount that is amortized each year. (Round answer to 2 decimal places, e.g. 52.75.) Straight-line discount amortization $ 1.85 each year Under the above assumption, prepare journal entries to record the initial investment, receipt of interest, and recognition of interest income in each of the three years, and the maturity of the bond at the end of the third year. (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 2 decimal places, e.g. 52.75.) Account Titles and Explanation Date Day 1 End of Year 1 Bond Investment at Amortized Cost ✓ ✓ Cash Cash Bond Investment at Amortized Cost ✓ End of Year 2 Cash Interest Income ✓ Bond Investment at Amortized Cost Interest Income ✔ End of Year 3 Cash Bond Investment at Amortized Cost Bond Inve at Amortized Cost Interest Income (To record interest) ✓ ✓ ✓ Debit 95.12 1.62 9 1. 9 1.62 √✓ ✓ √✓ Credit 95.12 10.62 10.62 10.62 x Your answer is incorrect. Try again. Calculate the total interest income under the two methods over the three-year period. (Round answers to 2 decimal places, e.g. 52.75.) Effective interest method Straight line method 10.85

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