on January 1, 2019, Dologan Company purchased the bonds:

Purchase price: $393,748.6

Effective interest yield: 10%

Par value: $366,000

Stated interest rate: 12%

Bond issue date: January 1, 2019

Mature date: January 1, 2024

Interest receipt date: every December 31

Dologan uses the effective interest method for amortization of bond premium or discount and carries the bonds at FV-OCI. The fair value of the bonds at each year-end is as follows:

December 31, 2019 $391,000

December 31, 2020 $377,000

The investment was sold for $377,000 on December 31, 2020.

Instructions:

1. Journalize interest receipt and fair value adjustment for 2019. Round answers to 2 decimal places.

2. Journalize fair value adjustment for 2020, sale of the investment on December 31, 2020, and reclassification of any unrealized gains or losses to net income. Round answers to 2 decimal places.