Question: Recording Entries for HTM Debt Securities-- Effective Interest Method On July 1, 2020, West Company purchased for cash, seven $10,000 bonds of North Corporation to

Recording Entries for HTM Debt Securities-- Effective Interest Method On July 1, 2020, West Company purchased for cash, seven $10,000 bonds of North Corporation to yiel 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 $64,800. 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 Jul 1, 2020 Investment in AFS Securities Cash C Dec 31, 2020 Interest Receivable Fair Value Adjustment--AFS Interest Revenue Check Dr. Cr. b. 0 . . . e Recording Entries for HTM Debt Securities-- Effective Interest Method On July 1, 2020, West Company purchased for cash, seven $10,000 bonds of North Corporation to yiel 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 $64,800. 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 Jul 1, 2020 Investment in AFS Securities Cash C Dec 31, 2020 Interest Receivable Fair Value Adjustment--AFS Interest Revenue Check Dr. Cr. b. 0 . . . e

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