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Adjust FVA at Year$-$End

Entries for TS: Effective Interest Method

Note: When answering the following questions, round answers to the nearest whole dollar.

Amortization Schedule

Journal Entries in Year $1$

Journal Entries in Year $2$

b$.$ Record the entry for the purchase of the bonds by West Company on July $1$ of Year $1.$

$\backslash$table$[[$Date$,$Account Name,,Debit,Credit$],[$Jul$.1,$ Year $1,,vv,0,0],[,vv,0,0],[$To record investment purchase.,,,$]]$

$\backslash$table$[[$Date$,$Account Name,,Debit,Credit,$],[$Dec$.31,$ Year $1,-,v,0,,0],[7,vv,0,,0],[,vv,0,$of$,0],[$To accrue interest revenue.,,,,$],[$Dec$.31,$ Year $1,,vv,0,,0],[,vv,0,,0],[$To record unrealized gain or loss.,,$-,,]]$