On July 1,2020 , Baker Company purchased \(\$ 50,000\) of LoCal Company \(6 \%\) bonds at par value. The bonds pay interest semiannually on July 1 and January 1. At December 31, 2020, the bonds have a fair value of \(\$ 51,000\). Provide the journal entries

(a) to record the purchase of the investment, assuming that the bonds are classified as trading securities, 

(b) to record investment income and any other needed adjustments at December 31, 2020.