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Question 5 Incomplete answer Marked out of 54.00 p Flag question Recording Entries for HTM Debt Securities- Effective Interest Method On July 1, 2020, West
Question 5 Incomplete answer Marked out of 54.00 p Flag question Recording Entries for HTM Debt Securities- Effective Interest Method On July 1, 2020, West Company purchased for cash, sixteen $10,000 bonds of North Corporation to yield 10%. The bonds pay 9% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as held-to-maturity securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discount or premium. Amortization Schedule Journal Entries in 2020 Financial Statement Presentation Journal Entries in 2021 d. Indicate the effects of this investment on the 2020 income statement and year-end balance sheet. Note: List accounts in alphabetical order. Income Statement 2020 Other Revenues and Gains $ 0 Balance Sheet December 31, 2020 Assets $ 0 0 Please answer all parts of the question. Question Incomplete answer Marked out of 54.00 p Flag question Recording Entries for HTM Debt Securities Effective Interest Method On July 1, 2020, West Company purchased for cash, sixteen $10,000 bonds of North Corporation to yield 10%. The bonds pay 9% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as held-to-maturity securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discount or premium. Amortization Schedule Journal Entries in 2020 Financial Statement Presentation Journal Entries in 2021 e. Record the receipt of interest on January 1, 2021. f. After the interest payment on July 1, 2021, two of the bonds were sold for $38,600 cash. Provide the required entries on July 1, 2021. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Date Account Name Dr. Cr. e. Jan. 1, 2021 0 0 0 f. Jul. 1, 2021 : 0 O O O O a To record receipt of interest. Jul. 1, 2021 0 O O o oo To record sale of bonds. Please answer all parts of the
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