On 1 May 2007, Bertrum Ltd. purchased $1,520,000 of Fox Corp. 8.1% bonds. The bonds pay semi-annual interest each 1 May and 1 November. The market interest rate was 8% 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 factor 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 4% Interest Revenue Amortization Bond 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 31 December year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 1 2 3 4 5 6 > Record the Investment bond. Note: Enter debits before credits. Date General Journal Debit Credit 1 May 2007 Record entry Clear entry View general Journal