2 Not complete Marked out of 25.00 Flag question Recording Entries for AFS Debt Securities- Effective Interest Method On January 1, 2020, Jules Company purchased for cash, $50,000 bonds (ten $5,000 bonds) of Android Corporation at a market rate of 6%. The bonds pay 6.5% interest, payable on a semiannual basis each June 30 and December 31, and mature on December 31, 2024. The bonds are classified as available-for-sale securities. The annual reporting period of Jules Company ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Amortization Schedule Journal Entries for 2020 Financial Statement Presentation a. Prepare a bond amortization schedule for the year 2020, using the effective interest method. Note: Round each amount entered into the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Date Stated Interest Market Interest Premium Bond Amortization Amortized Cost Jan. 1, 2020 June 30, 2020 5 0 05 05 0 0 Dec. 31, 2020 0 0 Check Previous Save Answers esc C # 80 Next O 69 BusinessCourse My Subscriptions On January 1, 2020, Janes company purchased for a 20000 Boras en bonds) of Android Corporation at a market rate of 6%. The bonds pay 6.5% interest, payable on a semiannual basis each June 30 and December 31, and mature on December 31, 2024. The bonds are classified as available-for-sale securities. The annual reporting period of Jules Company ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Amortization Schedule Journal Entries for 2020 Financial Statement Presentation b. Record the entry for the purchase of the bonds by Jules Company on January 1, 2020. c. Record the entry for the receipt of interest on June 30, 2020. d. Record the entry for the receipt of interest on December 31, 2020. e. Record the adjusting entry on December 31, 2020, to adjust the debt investment to fair value. The fair value of the bonds on December 31, 2020, was $49,000. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round each amount to the nearest whole dollar. b Date Jan. 1, 2020 Account Name Dr. Cr. O 0 c June 30, 2020 0 0 0 d. Dec. 31, 2020 " 0 o 0 e Dec. 31, 2020 O 0 0 0 0 Check esc G Onjanuary 172020, Jones company purchased TOT CASTI, $50,000 DONES en 25,000 bonds) of Android Corporation at a market rate of 6%. The bonds pay 6.5% interes payable on a semiannual basis each June 30 and December 31, and mature on December 31, 2024. The bonds are classified as available-for-sale securities. The annual reporting period of Jules Company ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Amortization Schedule Journal Entries for 2020 Financial Statement Presentation f. Determine the impact on the following financial statement categories for 2020, assuming no transactions other than those of the AFS securities. Note: Use a negative sign to indicate a loss. 1. Other comprehensive income (loss) $ 0 2. Net income (loss) $ 0 3. Comprehensive income (loss) $ 0 4. Other revenues and gains $ 0 5. Other expenses and losses $ 0 & Determine the balance in the Investment account on the balance sheet of December 31, 2020. Investment in AFS securities, Dec. 31, 2020 $ 0 Check Previous Save Answers esc on Next O