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Recording Entries for TS-Effective Interest Method Adjust FVA at Sale and Year-End On July 1, 2020, West Company purchased for cash, four $10,000 bonds of North Corporation at a market rate of 4%. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as trading securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Ignore income taxes. Amortization Schedule Journal Entries in 2020 Journal Entries in 2021 Interest a. Prepare a bond amortization schedule for the life of the bonds 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. Adjust market interest in the final year of the bond term for any net rounding difference. Stated Market Premium Bond Date Interest Amortization Amortized Cost Jul 1, 2020 Jan. 1.2021 $ 0$ 0 Jul 1, 2021 0 0 0 0 Jan. 1, 2022 0 0 0 Jul. 1.2022 0 0 0 0 Jan 1, 2023 0 0 0 Jul. 1. 2023 0 0 0 0 Total $ 0$ 0 Please answer all parts of the question. Recording Entries for TS-Effective Interest Method Adjust FVA at Sale and Year-End On July 1, 2020, West Company purchased for cash, four $10,000 bonds of North Corporation at a market rate of 4%. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as trading securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Ignore income taxes. Amortization Schedule Journal Entries in 2020 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 entries by West Company on December 31, 2020 to accrue interest revenue and record the unrealized gain or loss. The fair value of the bonds on December 31, 2020, was $49,800. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round each amount to the nearest whole dollar. 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. Jul. 1, 2020 Cr. 5 0 0 C Dec 31, 2020 0 0 0 0 To accrue interest revenue Dec 31, 2020 0 0 0 To record unrealized gain or loss Recording Entries for TS-Effective Interest Method Adjust FVA at Sale and Year-End On July 1, 2020, West Company purchased for cash, four $10,000 bonds of North Corporation at a market rate of 4%. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as trading securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Ignore income taxes. Amortization Schedule Journal Entries in 2020 Journal Entries in 2021 d. Record the receipt of interest on January 1, 2021. e. Record the sale of all of the bonds on January 2, 2021, for $49,800. f. Record the adjustment to the Fair Value Adjustment account on December 31, 2021, assuming no additional TS investments. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round Cash Note: If a jour Interest Receivable lect "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Date Investment In TS Dr. Cr. d. Jan 1, 202 Fair Value Adjustment--TS 0 0 Investment in AFS Securities 0 Fair Value Adjustment--AFS Jan 2, 207 Investment in HTM Securities 0 0 Investment In Stock 0 0 Fair Value Adjustment--Equity Securities Fair Value Adjustment--Fair Value Option Jan. 2. 202 0 0 Allowance for Credit Losses Accumulated Other Comprehensive Income 0 Unrealized Gain or Loss--OCI 0 0 Unrealized Gain or Loss--Income f Dec. 31, 202 Dividend Revenue 0 Interest Revenue 0 0 Investment Income Please answer Loss on Impairment Recovery of Loss on Impairment Loss on Sale of Investment Gain on Sale of Investment N/A 0

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