Golden Farms is a grower of hybrid seed corn for Ortiz Genetics Corporation. It has had two exceptionally good years and has elected to invest its excess funds in bonds. The following selected transactions relate to bonds acquired as an investment by Golden Farms, whose fiscal year ends on December 31. Jan. 1 Purchased at face value $800,000 of Richey Corporation 10-year, 9% bonds dated January 1, 2016, directly from the issuing corporation Dec. 31 Accrual of interest at year-end on the Richey bonds (Assume that all intervening transactions and adjustments have been properly recorded and the number of bonds owned has not changed from December 31. 2016, to December 31, 2018.) Jan. 1 Received the semiannual interest on the Richey bonds. Jan. 1 Sold $400,000 Richey bonds at 114. Dec. 31 Accrual of interest at year-end on the Richey bonds. (a) Journalize the listed transactions for the years 2016 and 2019. (b) Assume that the fair value of the bonds at December 31, 2016, was $775,000. These bonds are classified as available-for-sale securities. Prepare the adjusting entry to record these bonds at fair value. (c) Based on your analysis in part (b) show the balance sheet presentation of the bonds and interest receivable at December 31, 2016. Assume the investments are considered long-term. Indicate where any unrealized gain or loss is reported in the financial statements