On July $1$ of Year $1,$ West Company purchased for cash, $40,$ $$10,000$ bonds of North Corporation at a market rate of $6\%.$ The bonds pay $5\%$ interest, payable on a semiannual basis each July $1$ and January $1,$ and mature in three years on July $1.$ The bonds are classified as trading securities$.$ West Company's annual reporting period ends December $31.$ Assume the effective interest method of amortization of any discounts or premiums. Record the adjusting entries by West Company on December $31$ of Year $1$ to accrue interest revenue ad record the unrealized gain or loss. The fair value of the bonds on December $31$ of Year $1$ was $$415,000.$