On January 1, Jules Company purchased for cash, $50,000 bonds (10, $5,000 bonds) of Android Corporation at a market rate of 6%. The bonds pay 6.5% interest, payable on a semiannual basis each June 30 and December 31, and mature on December 31 in five years. The bonds are classified as available-for-sale securities. The annual reporting period of Jules Company ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Note: When answering the following questions, round answers to the nearest whole dollar. Amortization Schedule Journal Entries in Year 1 Financial Statement Presentation a. Prepare a bond amortization schedule for the year using the effective interest method. Date Stated Interest Market Premium Bond Interest Amortization Amortized Cost Jan. 1 $ June 30 $ $ $ Dec. 31 Check On January 1, Jules Company purchased for cash, $50,000 bonds (10, $5,000 bonds) of Android Corporation at a market rate of 6%. The bonds pay 6.5% interest, payable on a semiannual basis each June 30 and December 31, and mature on December 31 in five years. The bonds are classified as available-for-sale securities. The annual reporting period of Jules Company ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Note: When answering the following questions, round answers to the nearest whole dollar. Amortization Schedule Journal Entries in Year 1 Financial Statement Presentation b. Record the entry for the purchase of the bonds by Jules Company on January 1. c. Record the entry for the receipt of interest on June 30. d. Record the entry for the receipt of interest on December 31. e. Record the adjusting entry on December 31 to adjust the debt investment to fair value. The fair value of the bonds on December 31 was $49,000. Date Account Name (b) Jan. 1 To record the entry for the purchase of bonds. (c) June 30 To record the receipt of interest. (d) Dec. 31 (e) Dec. 31 To record the receipt of interest. Check To adjust investments to fair value at year-end. Debit Credit On January 1, Jules Company purchased for cash, $50,000 bonds (10, $5,000 bonds) of Android Corporation at a market rate of 6%. The bonds pay 6.5% interest, payable on a semiannual basis each June 30 and December 31, and mature on December 31 in five years. The bonds are classified as available-for-sale securities. The annual reporting period of Jules Company ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Note: When answering the following questions, round answers to the nearest whole dollar. Amortization Schedule Journal Entries in Year 1 Financial Statement Presentation f. Determine the impact on the following financial statement categories for the year assuming no transactions other than those of the AFS securities. Note: Use a negative sign to indicate a loss. 1. Other comprehensive income $ 2. Net income 3. Comprehensive income $ $ $ 4. Other revenues g. Determine the balance in the Investment account on the balance sheet of December 31. Investment in AFS securities, Dec. 31: $ Check