On January 1, 2017, Shamrock Company purchased 13% bonds, having a maturity value of $308,000, for $330,766.44. The bonds provide the bondholders with a 11% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Shamrock Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.

2017		$328,700		2020		$317,300
2018		$316,400		2021		$308,000
2019		$315,400

(a)		Prepare the journal entry at the date of the bond purchase.
(b)		Prepare the journal entries to record the interest revenue and recognition of fair value for 2017.

No. Date (a) Jan. 1, 2017 (b) Dec. 31, 2017 (c) Dec. 31, 2018 Account Titles and Explanation Debt Investments Cash Cash x- Debt Investments Interest Revenue (To record interest received) (To record fair value adjustment) Debit 330,766.44 40040 > Credit 330,766.44 10.0 00 00