On January 1, 2020, Buffalo Company purchased 12% bonds, having a maturity value of $316,000 for $339,957.48. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Buffalo 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 $337,900 2023 $326,400 2021 $325,300 2024 $316,000 2022 $324,200 (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 O for the amounts.) Date Account Titles and Explanation Jan. 1, 2020 Debt Investments cash Dec. 31, 2020 Interest Receivable Dec. 31, 2021 Debt Investments Interest Revenue (To record interest received) Fair Value Adjustment Unrealized Holding Gain or Loss - Equity (To record fair value adjustment) Unrealized Holding Gain or Loss - Equity Fair Value Adjustment Debit 339957.48 37920.00 Credit 339957.48 3924.25 33995.75