Entries for TS: Effective Interest Method On July 1 of Year 1. West Company purchased for cash, 40,510,000 bonds of North Corporation at a market rate of 6%. The bonds pay 5% interest, payable on a semiannual basis cach july 1 and january 1 , and mature in three years on july 1. The bonds are classified as trading securities. West Company's annual reporting period ends December 31 . Assume the effective interest method of amortization of any discounts or premiums. Note: When answering the following questions, round answers to the nearent whole dollar. a. Prepare a bond amortization schedule for the life of the bonds using the effective interest method. Prepare a bond amortization schedule for the life of the bonds using the effective interest method. b. Record the entry for the purchase of the bonds by West Company on july 1 of Year. 1. Ci fiecord the adjusting entries by West Company on December 31 of Year to accrue interest revenue and record the unrealited gain or loss. The fair value of the bonds on December 31 of Year 1 was $415,000. d. Record the receipt of interest on january 1 of Year 2 . e. Record the sale of all of the bonds on lanuary 2 of Year 2 for $415,250. f. Record the adjustment to the Fair Value Adjustment account on December 31 of Year 2, assuming no additional TS investments