On January 1, 2017, Nash Company purchased 12% bonds, having a maturity value of $320,000, for $344,260.74. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Nash 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		$342,000		2020		$330,700
2018		$329,700		2021		$320,000
2019		$328,700

(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.
(c)		Prepare the journal entry to record the recognition of fair value for 2018.

No. Date Account Titles and Explanation Debit Credit (a) T Jan. 1, 2017Debt Investments 344260.74 Cash 344260.74 (b) T Dec. 31, 2017# | |[cash 38400 Debt Investments 3973.93 Interest Revenue 34426.07 (To record interest received) Fair Value Adjustment 17131.86 Unrealized Holding Gain or Loss - Equity 17131.86 (To record fair value adjustment) (c) T Dec. 31, 2018Unrealized Holding Gain or Loss - Equity Fair Value Adjustment 79286.86