On January 1, 2020, Flounder Company purchased 12% bonds, having a maturity value of $278,000 for $299,076.51. 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. Flounder 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 2021 2022 $296,600 $287,300 $286,200 2023 2024 $288,200 $278,000 (a) (b) (c) Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. Prepare the journal entry to record the recognition of fair value for 2021. (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.) Debit Credit ate 2020 Account Titles and Explanation Debt Investments 299076.57 Cash 299076.57 L, 2020 Interest Receivable 33360 3652.35 29907.65 Interest Revenue Fair Value Adjustment (To record interest received) Unrealized Holding Gain or Loss - Equity 975.84 975.84 Interest Receivable (To record fair value adjustment) Debt Investments L, 2021 33360 Interest Revenue 3797.58