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  3. on july 1 of year 1 , west company purchased for c

On July 1 of Year 1 , West Company purchased for cash, 8,$10,000 bonds of...

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Accounting

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On July 1 of Year 1 , West Company purchased for cash, 8,$10,000 bonds of North Corporation to yleld 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 classifled 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. Journat Entries and Financial Statement presentation for Year-1 fournat Entries for Year 2 a. Prepare a bond amortization schedule for Year 1 and Year 2 using the effective interest method

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