Caldwell Company acquired $3,517,000 face value, 10% bonds as a trading debt investment on January 1 of the current year when the market rate of interest was 12%. Interest is paid annually each December 31. Caldwell purchased the bonds, which mature in 12 years, for $3,081,288. Caldwell amortizes the discount using the effective interest rate method. The fair value of the bonds at the end of the year is $3,012,000. Prepare the journal entries required on the date of acquisition and at the end of the first year after acquisition. This includes the entry to record the fair value adjustment. Begin by recording the journal entry required on the date of acquisition. (Record debits first, then credits. Exclude explanations from any journal entries.) Account January 1