Assume that the fair value of the bonds at December 31, 2020, was $2,564,650. These bonds are classified as available-for-sale securities. Prepare the adjusting entry to record these bonds at fair value.

Jan. 1 Dec. 31 Purchased at face value $2,331,500 of Javier Nursing Centers, Inc., 10-year, 10% bonds dated January 1, 2017, directly from Javier Accrual of interest at year-end on the Javier bonds. (Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2020, to December 31, 2022.) 2023 Jan. 1 Jan. 1 Dec. 31 Received the annual interest on the Javier bonds Sold $1,165,750 Javier bonds at 106 Accrual of interest at year-end on the Javier bonds. Your answer is correct. Journalize the listed transactions for the years 2020 and 2023. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Debt Investments 2331500 Cash 2331500 Dec. 31, 2020 Interest Receivable 233150 Interest Revenue 233150 Jan. 1, 2023 Cash 233150 Interest Receivable 233150 Jan. 1, 2023 cash 1235695 Debt Investments 1,165,750 Gain on Sale of Debt Investments 69945 (To record the sale of Javier bonds) Dec. 31, 2023 4Interest Receivable 116575 Interest Revenue 116575 Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 7 of 15 used Assume that the fair value of the bonds at December 31, 2020, was $2,564,650. These bonds are classified as available-for-sale securities. Prepare the adjusting entry to record these bonds at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select "No entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation Debit Credit Dec. 31, 2020