On January 1, 2013, Phantom Company acquires $320,600 of Spiderman Products, Inc., 9% bonds at a price of $304,931. The interest is payable each December 31, and the bonds mature December 31, 2015. The investment will provide Phantom Company a 11.00% yield. The bonds are classified as held-to-maturity.
Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method.
Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method
Prepare the journal entry for the interest receipt of December 31, 2014 and the discount amortization under the straight-line method.
Prepare the journal entry for the interest receipt of December 31, 2014, and the discount amortization under the effective-interest method.