\#Activity 4 Twilight Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Twilight, whose fiscal year ends on December 31. 2017 Jan. 1 Purchased at face value $2,000,000 of Mr Cullen Nursing Centers, Inc., 10-year, 8\% bonds dated January 1, 2017, directly from Mr Cullen. ACC 232 - Unit 6 Part III - Practice Problems - Inter Company Investments Dec. 31 Accrual of interest at year-end on the Mr Cullen bonds. (Assume that there has been no change in the fair value of the bonds since the time of purchase). 2020 Jan. 1 Received the annual interest on the Mr Cullen bonds. Jan. 1 Sold $1,000,000Mr Cullen bonds at 106% of their Face Value. Dec. 31 Accrual of interest at year-end on the Mr Cullen bonds. (a) Journalize the listed transactions for the years 2017 and 2020. (b) Assume that the fair value of the bonds at December 31,2017 , was $2,200,000. These bonds are classified as available-for-sale securities. Prepare the adjusting entry to record these bonds at fair value on Dec 31, 2017