On july 1 of the curent year, West Company purchased for cash,22,510,000 bonds of North Corporation at a market rate of 6 The bonds pay 5% interest, payable on a semiannual bass each July 1 and January 1, and mature in three years un July 1 The bonds are dissified 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 antwering the following questions, round answers to the nearest whole dollar. Amortization Schedule Journal Entries in Year 1 Journal Entreve Year 2 a Prepare a bond amortization schedule for the life of the bonds using the effective interest method Date State Market Discou Bend Interest Amortization Amortized Cest 5.300-1 5.500 - 3.500 - OM ON 5.500 - 5500 0 M 1300 Check Man for the 1733 b. Record the entry for the purchase of the bonds by West Company on July 1, Dut Account Name To record in Debit Credit 10: * Record the adjusting entries by West Comidany de December 31 to accrue interest revenue and record the unrealized gain or loss. The fair value of the bonds on that date was $228,250 Date Dec 31 Account Name Debit Credit attestres Oec. 21, War Termond naad de se Check d. Record the receipt of interest on January 1, of the following year. Date Account Name Jan. 1, Year 2 To record the receipt of interest Dr. Cr. 0 e. Assume that all of the bonds were sold on January 2 for $228,250, after the receipt of interest in part d. Record the entry for the sale of the bonds Date Jan. 2, Year 2 Account Name Dr. 0 To record the sale.of.investments f. Record the adjustment to the Fair Value Adjustment account on December 31, assuming no additional TS investments. Date Dec. 31, Year 2 Check Account Name To adust EVA account Cr