Mitch, yes, that is correct. If 1/8" is 3.5mm in new money then that is the cable you need. Plug it into your PC where the speakers would go and then into the AUX port on the Katana.
Yes, you phone works in the same way too.
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Just to add to the pile…I have a Katana. The Aux input as mentioned above adds nothing to the input signal. I got tired of wires dangling about. Purchased a USB adapter ($10, Amazon) and leave it plugged in the Aux input. Sound level controlled by phone, tablet, etc. Good for listening to lessons or backing tracks.
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Did you mean a Bluetooth to audio jack adapter like this one?:
Yes, there are many. I got the item by Comsoon. It plugs directly into the amp without a wire so it ends up not hanging down as this one would.
Note that you will get latency with any Bluetooth streaming system.
Whether this matters to your or not will depend on whether you are just playing backing tracks, in which case it will make no difference at all, or if you will be using it with video or something like the JustinGuitar app, where there may be a noticeable latency between the video and audio.
Cheers,
Keith
FWIW, I haven’t noticed any latency at all with the Justin video lessons (nor other video lessons) on my setup. I believe the latency issues are more problematic when people use a bluetooth transmitter from their instrument to a receiver on the amp.