On January 1, 2019, the partnership Lastrapes and Lastrapes purchased $1,000,000 of The McDaniel Companys bonds. The bonds have a stated rate of 7% and pay interest on January 1 and July 1 of each year. Lastrapes and Lastrapes consider this investment trading debt. The investment was worth $1,200,000 on December 31, 2019.

A. Provide the entries for the purchase, receipt of the first two interest payments and the fair value adjustment for this investment for 2019.