- Note: When answering the following questions, round each amount to the nearest whole dollar. Amortization Schedule Journal Entries and Financial Statement Presentation for Year 1 Journal Entries for Year 2 a. Prepare a bond amortization schedule for Year 1 and Year 2 using the effective interest method. b. Record the entry for the purchase of the bonds by West Company on July 1 of Year 1. d. Indicate the effects of this investment on the Year 1 income statement and year-end balance sheet. Ignore cash. - Note: Do not use a negative sign for an account with a normal balance. e. Record the receipt of interest on January 1 of Year 2