On 1 May 2007, Bertrum Ltd. purchased $1,220,000 of Fox Corp. 6.2% bonds. The bonds pay semi-annual interest each 1 May and 1 November. The market interest rate was 6% on the date of purchase. The bonds mature on 1 November 2011 (PV of $1. PVA of $1, and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the price paid by Bertrum. (Round time value foctor to 5 decimal places. Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Price paid 2 Construct a table that shows interest revenue reported by Bertrum, and the carrying value of the investment for each interest period to maturity. Use the effective-interest method (Round your answers to the nearest whole dollar amount) Period Cash Payment 3 % Interest Revenue Amortization Bond Carrying Value 1 May 2007 1 Nov 2007 1 May 2008 1 Nov 2008 2. Construct a table that shows interest revenue reported by Bertrum, and the carrying value of the investment for each interest period to maturity. Use the effective interest method. (Round your answers to the nearest whole dollar amount) Period Cash Payment 3% Interest Revenue Amortization Bood Carrying Value 1 May 2007 1 Nov 2007 1 May 2008 1 Nov 2008 1 May 2009 1 Nov 2009 1 May 2010 1 Nov 2010 1 May 2011 1 Nov 2011 3. Assuming the bond is classified as AC, prepare the entries for 2007 and 2008 for Bertrum, including adjusting entries at the December year-end. (If no entry is required for a transaction/event, select "No journal entry required in the first account Round your answers to the nearest whole dollar amount) View transaction list Journal entry worksheet Record the Investment bond. Note: Enter debits before credits, General Journal Debit Credit Date 1 May 2007 Cash View transaction list Journal entry worksheet