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Just need help on the journal entries for year 2! On July 1 of the current year, West Company purchased for cash, 18, $10,000 bonds
Just need help on the journal entries for year 2!
On July 1 of the current year, West Company purchased for cash, 18, $10,000 bonds of North Corporation to yield 10%. The bonds pay 9% interest, payable on a semiannual basis each July and January 1, and mature in three years on July 1. The bonds are classified as held-to-maturity securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discount or premium. Note: When answering the following questions, round answers to the nearest whole dollar. Amortization Schedule Journal Entries in Year 1 Journal Entries in Year 2 e. Record the receipt of interest on January 1 of the following year (Year 2). Date Jan. 1, Year 2 Date Jul. 1, Year 2 Account Name Jul. 1, Year 2 To record interest received. Account Name To record interest received. f. After the interest payment on July 1, Year 2, two of the bonds were sold for $17,370 cash. Provide the required entries on that date. To record sale of bond. > Debit 0 0 Debit 0 0 0 0 0 Credit 0 0 0 Credit 0 0 0 0 0 0Step by Step Solution
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