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Bramble Corp. invested in a three-year, $100 face value, 9% bond paying $95.11. At this...

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Accounting

Bramble Corp. invested in a three-year, $100 face value, 9% bond paying $95.11. At this price, the bond will yield a 11% return.Interest is payable annually. Bramble uses the amortized cost model of accounting for investments.Prepare a bond discount amortization table for Bramble, assuming Bramble uses the effective interest method required by IFS.(Round answers to 2 decimal places, e.g.52.75.)Bond Discount Amortization TableDateCash ReceivedInterest IncomeBond DiscountAmortizationAmortized Cost ofDay1EndYear1EndYear2EndYear3Prepare 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. List all debit entries before credit entries. Round answers to 2 decimal places, e.g.52.75.)DateAccount Titles and ExplanationDebitCreditDay 1End ofYear 1End of Year 2End of year 3
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