Launch Chapter 14 investments in Det Adjust.EVA at Year End On July 1 of the current year, West Company purchased for cash. &. 510.000 bonds of North Corporation at a market rate of 49. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1. and mature in three years on July 1. The bonds are classified as trading securities. The annual reporting period ends December 31. Assume the effective Interest method of amortization of any discounts or premiums. Ignore income taxes. 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 a. Prepare a bond amortization schedule for the life of the bonds using the effective interest method. Date Statud Interest Var Year 25 Jul. Year 2 JIL 1. Var jul. 1. vara Jan 14 1. Year 2.000 5 2.000 2.000 2.000 2000 2.000 Market Premium Band Interest Amortization Amortized Cost 77.970 1.200 XS 522 117,252 3518 x 518 117.770 x 1530 533 X 118.300 X 1509 549 M 118,852 x 2566 x 566 119,41% 3583 583 0.000 Check On July of the current year, West Company poriador, 310,000 hands of North Carpen market val of 4 The bond pay interest payable manual achly and orary and train three years on 1. The band referenties. The reporting period ends December. Aume the effective erst method of amatution of any counts premium cometas Note Wrennwering the following question round answers to the nearest whole dolar Amortion Schedule maltres in var 1 Journal Entries in Your 2 b. Record the entry for the purchase of the bonds by West Company on July Data Account Name Deble Crede Domestuch t. Picard the adjusting entries by West Company on December 31 to accrue interest revenue and record the unrealized anores. The fair value of the bonds on that date wat R3.000 Account Nam Dubit Credit Data Dec 1 0 0X Toa. De D 0 To Clos Check decurs thereof story of the BE Anme Asume that all of the bonds were sold on January 2 for $8.000, e de receptof uiterst part is ecord they for the sale of the bandsting the associated Foot Adement une. Prior to recording the at the investment to fora Note Ifline ma journal entered for the transaction, select Abando NIA Credi" as the account names and leave the brand newer bank troll Date Arun Name Date AN 0 D Te recorded Check Launch Chapter 14 investments in Det Adjust.EVA at Year End On July 1 of the current year, West Company purchased for cash. &. 510.000 bonds of North Corporation at a market rate of 49. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1. and mature in three years on July 1. The bonds are classified as trading securities. The annual reporting period ends December 31. Assume the effective Interest method of amortization of any discounts or premiums. Ignore income taxes. 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 a. Prepare a bond amortization schedule for the life of the bonds using the effective interest method. Date Statud Interest Var Year 25 Jul. Year 2 JIL 1. Var jul. 1. vara Jan 14 1. Year 2.000 5 2.000 2.000 2.000 2000 2.000 Market Premium Band Interest Amortization Amortized Cost 77.970 1.200 XS 522 117,252 3518 x 518 117.770 x 1530 533 X 118.300 X 1509 549 M 118,852 x 2566 x 566 119,41% 3583 583 0.000 Check On July of the current year, West Company poriador, 310,000 hands of North Carpen market val of 4 The bond pay interest payable manual achly and orary and train three years on 1. The band referenties. The reporting period ends December. Aume the effective erst method of amatution of any counts premium cometas Note Wrennwering the following question round answers to the nearest whole dolar Amortion Schedule maltres in var 1 Journal Entries in Your 2 b. Record the entry for the purchase of the bonds by West Company on July Data Account Name Deble Crede Domestuch t. Picard the adjusting entries by West Company on December 31 to accrue interest revenue and record the unrealized anores. The fair value of the bonds on that date wat R3.000 Account Nam Dubit Credit Data Dec 1 0 0X Toa. De D 0 To Clos Check decurs thereof story of the BE Anme Asume that all of the bonds were sold on January 2 for $8.000, e de receptof uiterst part is ecord they for the sale of the bandsting the associated Foot Adement une. Prior to recording the at the investment to fora Note Ifline ma journal entered for the transaction, select Abando NIA Credi" as the account names and leave the brand newer bank troll Date Arun Name Date AN 0 D Te recorded Check
