On July 1, 2020, West Company purchased for cash, eight $10,000 bonds of North Corporation at a market rate of 6%. 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. Prepare a bond amortization schedule for 2020 and 2021 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.
Stated Market Date Amortization Amortized Cost
Jul 1, 2020
Jan. 1.2021 $
Jul 1, 2021 Discount Bond Interest Interest $ 0 0$ 0 0 0$ 0 0 0 0