On January 1, 2020, Ayayai Company purchased 11% bonds, having a maturity value of $314,000 for $338,426.53. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Ayayai 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. 2020 $336,200 2023 $323,500 2021 $322,500 2024 $314,000 2022 $321,500 (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 2020. (c) Prepare the journal entry to record the recognition of fair value for 2021. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) (Round answers to 2 decimal places, eg. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) No. Date Account Titles and Explanation Debit Credit (b) (To record interest received) (To record fair value adjustment) (C) On December 21, 2020, Monty Company provided you with the following information regarding its equity investments. December 31, 2020 Cost Fair Value Investments (Trading) Unrealized Gain (Loss) Clemson Corp, stock $18,600 $17.500 $(1,100) Colorado Co. stock 9,600 8,600 (1,000) Buffaloes Costock 18,600 19,180 580 Total of portfolio $46,800 $45,280 (1,520) 0 Previous fair value adjustment balance Fair value adjustment-Cr. $(1,520) During 2021, Colorado Co. stock was sold for $9.080. The fair value of the stock on December 31, 2021, was Clemson Corp. stoc $17,600; Buffaloes Co.stock-$19,080. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"fo the account titles and enter for the amounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) (c )