Course Content / Chapter 14 Chapter 14 Homework Questions Partrany correct MBTK 0:43 06:35 Entries for HTM Debt Securities: Effective Interest Method On July 1 of Year 1, West Company purchased for cash, eight $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 held-to-maturity 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 answers to the nearest whole dollar. Amortization Schedule Journal Entries in Year 1 e. Record the receipt of interest on January 1 of Year 2. Date Jan. 1, Year 2 Date Jul. 1, Year 2 Tag question Account Name Jul. 1, Year 2 To record interest received. Account Name To record interest received. Financial Statement Presentation Debit f. After the interest was received on July 1 of Year 2, two of the bonds were sold for $19,300 cash. Provide the required entries on July 1 of Year 2 for the receipt of interest and the sale of the two bonds. 0 0 Debit 0 0 0 Journal Entries in Year 2 0 0 Credit 0x 0x Credit 0x 0x 0x 0x 0x

Entries for HTM Debt Securities: Effective Interest Method On July 1 of Year 1, West Compary purchased for cash eight $10,000 bonds of North Corporation to yeld 10%. The bonds pily 94 interest, payabie on is semiannual basis each July 1 and january 1 , and mature in three years on july 1. The bonds are dassified as held-to-maturity 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 followng questions, cound answers to the nearest whole dollar e. Record the receipt of interest on January 1 of Year 2 E. After the interest was recelved on July 1 of Year 2 , two of the bonds were sold for $19,300 cash. Provide the required entries on july 1 of Year 2 for the receipt of interest and the sale of the two bonds