On 1/1/yr 1 Wiley purchased $300,000 in 8% 5 year bonds when the effective interest rate was 10%.  The bonds pay interest on 12/31 each year.  Wiley has a 12/31 year end.   These bonds are considered available for sale Prepare journal entries for the bonds for year 1 and year 2 assuming the following fair value information: 12/31/yr 1 $250,000 and 12/31/yr 2 $265,000. Create a 3 column comparison Balance Sheet and Income Statement for 12/31/year 2. One Column for each assumption: HTM, AFS, and Trading.

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