Recording Entries for HTM Debt Securities- Effective Interest Method On July 1, 2020, West Company purchased for cash, fifteen $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 a. Prepare a bond amortization schedule for 2020 and 2021 using the effective interest method. Note: Round each amount entered into the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Stated Market Discount Bond Date Interest Interest Amortization Amortized Cost Jul. 1, 2020 $ 0 Jan. 1, 2021 $ 0 $ 0 $ 0 0 Jul. 1, 2021 0 0 0 0 Please answer all parts of the question. Recording Entries for HTM Debt Securities Effective Interest Method On July 1, 2020, West Company purchased for cash, fifteen $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 b. Record the entry for the purchase of the bonds by West Company on July 1, 2020. C. Record the adjusting entry by West Company on December 31, 2020. The fair value of the bonds at December 31, 2020, was $153,900. 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). Dr. Cr. 0 0 Date Account Name b. Jul. 1, 2020 Investment in Stock Cash C. Dec. 31, 2020 Investment in Stock Interest Receivable A 0 0 0 0 0 O Interest Revenue 0 0 Please answer all parts of the question. Recording Entries for HTM Debt Securities- Effective Interest Method On July 1, 2020, West Company purchased for cash, fifteen $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 Interest Revenue $ 0 Balance Sheet December 31, 2020 Assets Investment in Stock A $ 0 Interest Receivable 0 Please answer all parts of the question. Cash Interest Receivable Investment in TS Fair Value Adjustment--TS Investment in AFS Securities Fair Value Adjustment--AFS Investment in HTM Securities Investment in Stock Fair Value Adjustment--Equity Securities Fair Value Adjustment--Fair Value Option Allowance for Credit Losses Accumulated Other Comprehensive Income Unrealized Gain or Loss--OCI Unrealized Gain or Loss--Income Dividend Revenue Interest Revenue Investment Income Loss on Impairment Recovery of Loss on Impairment Loss on Sale of Investment Gain on Sale of Investment N/A Recording Entries for HTM Debt Securities, Effective Interest Method On July 1, 2020, West Company purchased for cash, fifteen $10,000 bonds of North Corporation to yield 10%. The bonds pay 9% interest, payable on a semiannual basis each July 1 and Januar 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 $36,670 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 Cash Interest Receivable 0 0 f. Jul. 1, 2021 Investment in Stock 0 Cash 0 Interest Revenue 0 To record receipt of interest. Jul 1, 2021 Loss on Sale of Investment 0 0 Investment in Stock 0 0 To record sale of bonds. Please answer all parts of the question. . 0 . 0 Recording Entries for HTM Debt Securities- Effective Interest Method On July 1, 2020, West Company purchased for cash, fifteen $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 a. Prepare a bond amortization schedule for 2020 and 2021 using the effective interest method. Note: Round each amount entered into the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Stated Market Discount Bond Date Interest Interest Amortization Amortized Cost Jul. 1, 2020 $ 0 Jan. 1, 2021 $ 0 $ 0 $ 0 0 Jul. 1, 2021 0 0 0 0 Please answer all parts of the question. Recording Entries for HTM Debt Securities Effective Interest Method On July 1, 2020, West Company purchased for cash, fifteen $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 b. Record the entry for the purchase of the bonds by West Company on July 1, 2020. C. Record the adjusting entry by West Company on December 31, 2020. The fair value of the bonds at December 31, 2020, was $153,900. 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). Dr. Cr. 0 0 Date Account Name b. Jul. 1, 2020 Investment in Stock Cash C. Dec. 31, 2020 Investment in Stock Interest Receivable A 0 0 0 0 0 O Interest Revenue 0 0 Please answer all parts of the question. Recording Entries for HTM Debt Securities- Effective Interest Method On July 1, 2020, West Company purchased for cash, fifteen $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 Interest Revenue $ 0 Balance Sheet December 31, 2020 Assets Investment in Stock A $ 0 Interest Receivable 0 Please answer all parts of the question. Cash Interest Receivable Investment in TS Fair Value Adjustment--TS Investment in AFS Securities Fair Value Adjustment--AFS Investment in HTM Securities Investment in Stock Fair Value Adjustment--Equity Securities Fair Value Adjustment--Fair Value Option Allowance for Credit Losses Accumulated Other Comprehensive Income Unrealized Gain or Loss--OCI Unrealized Gain or Loss--Income Dividend Revenue Interest Revenue Investment Income Loss on Impairment Recovery of Loss on Impairment Loss on Sale of Investment Gain on Sale of Investment N/A Recording Entries for HTM Debt Securities, Effective Interest Method On July 1, 2020, West Company purchased for cash, fifteen $10,000 bonds of North Corporation to yield 10%. The bonds pay 9% interest, payable on a semiannual basis each July 1 and Januar 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 $36,670 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 Cash Interest Receivable 0 0 f. Jul. 1, 2021 Investment in Stock 0 Cash 0 Interest Revenue 0 To record receipt of interest. Jul 1, 2021 Loss on Sale of Investment 0 0 Investment in Stock 0 0 To record sale of bonds. Please answer all parts of the question. . 0 . 0