On July 1 of the current year, West Company purchased for cash, 70, $10,000 bonds of North Corporation at a market rate of 4%. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1, and mature in three years on July 1. The bonds are classified 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 answering the following questions, round answers to the nearest whole dollar. Journal Entries in Year 1 Journal Entries in Year 2 a. Prepare a bond amortization schedule for the life of the bonds using the effective interest method. Amortization Schedule Date Stated Interest Market Interest Premium Bond Amortization Amortized Cost Jul. 1, Year 1 $ 719,604 Jan. 1, Year 2 $ 17,500 $14,392 $ 3,108 716,496 Jul. 1, Year 2 17,500 14,330 3,170 713,326 Jan. 1, Year 3 17,500 14,267 3,233 710,093 Jul. 1, Year 3 17,500 14,202 3,298 706,795 Jan. 1, Year 4 17,500 14,136 3,364 703,431 Jul. 1, Year 4 17,500 14,069 3,431 700,000 Check