On July 1 of Year 1 West Company purchased for cash 8 10 000

Last updated: 10/12/2023

On July 1 of Year 1 West Company purchased for cash 8 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 in three years on July 1 The bonds are classified as AFS securities West Company s annual reporting period ends December 31 Assume the effective interest method of amortization of any discount or premium Note When answering the following questions round each amount to the nearest whole dollar Amortization Schedule Journal Entries and Financial Statement Presentation fo for Year 1 a Prepare a bond amortization schedule for Year 1 and Year 2 using the effective interest method Date Jul 1 Year 1 Jan 1 Year 2 s Stated Interest 05 Market Discount Bond Interest Amortization Amortized Cost 05 0 Journal Entries for Year 2 O