On July 1 of the current year, West Company purchased for cash, 26, 510,000 bonds of North Corporation at a market rate of 6%. 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. Amortization Schedule 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. Market Discount Bond Interest Amortization Amortized Cost Date Stated Interest Jul 1, Year 1 1, Jan. 1. Year 25 Jul. 1 Year 2 Jan. 1. Year 3 jul. 1. Year 3 Jan. 1 Year 4 . Jul 1, Year 4 b. Record the entry for the purchase of the bonds by West Company on July 1. Account Name Debit Credit Date Jul. 1. Year Cash To record investment purchase. c. Record the adjusting entries by West Company on December 31 to accrue interest revenue and record the unrealized gain or loss. The fair value of the bonds on that date was $269,750. Account Name Debit Credit Date Dec 31, Year 1 To accrue interest revenue Dec 31, Year 1 To record unrealized gain or loss. d. Record the receipt of interest on January 1, of the following year. Date Jan. 1, Year 2 Account Name Dr. Cr. To record the receipt of interest. . e. Assume that all of the bonds were sold on January 2 for $269,750, after the receipt of interest in part d. Record the entry for the sale of the bonds. Account Name Dr. cr. Date Jan. 2, Year 2 2. To record the sale of investments. f. Record the adjustment to the Fair Value Adjustment account on December 31, assuming no additional TS investments. Account Name Dr. Cr. Date Dec 31, Year 2 To adjust FVA account