On July 1 of Year 1, West Company purchased for cash, 8, $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. 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. Date Stated Interest Market Discount Bond Interest Amortization Amortized Cost Jul. 1, Year 1 Jan. 1, Year 2 $ $ 0 Jul. 1, Year 2 Jan. 1, Year 3 Jul. 1, Year 3 Jan. 1, Year 4 Jul. 1, Year 4 ooooo 0 $ 0 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 b. Record the entry for the purchase of the bonds by West Company on July 1 of Year 1. Date Account Name Jul. 1, Year 1 To record investment purchase. Debit Credit 0 0 0 c. Record the adjusting entries by West Company on December 31 of Year 1 to accrue interest revenue and record the unrealized gain or loss. The fair value of the bonds on December 31 of Year 1 was $83,000. Date Dec. 31, Year 1 Account Name To accrue interest revenue. Dec. 31, Year 1 Debit Credit 0 0 0 0 0 0 0 0 0 0 To record unrealized gain or loss. d. Record the receipt of interest on January 1 of Year 2. Date Account Name Jan. 1, Year 2 To record the receipt of interest. Dr. Cr. 0 0 0 0 e. Record the sale of all of the bonds on January 2 of Year 2 for $83,050, eliminating the related Fair Value Adjustment account balance. Prior to recording the sale, adjust the investment to fair value. Date Account Name Jan. 2, Year 2 To adjust FVA account. Date Jan. 2, Year 2 Dr. Cr. 0 0 0 0 Account Name Dr. Cr. 0 0 0 0 0 0 To record the sale of investments.