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On January 1, 2020, Metlock Company purchased 12% bonds, having a maturity value of $310,000 for $333,502.59. The bonds provide the bondholders with a 10%

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On January 1, 2020, Metlock Company purchased 12% bonds, having a maturity value of $310,000 for $333,502.59. 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. Metlock 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 $331,200 2023 $320,200 2021 $319,100 2024 $310,000 2022 $318.000 (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, es 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, 23, 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: Date Account Titles and Explanation Debit Credit 1.1.2020 Debt Investments 33350259 Cash 333502.59 31.2020 Cash 37200 Interest Revenue 33350259 3849.741 1547.51 Debt investments (To record interest received) Fake Value Adjustment Unrealised Holding Gain or Loss - Equity To record fair value adjustment) Unrealed Holding Gain or lossnuity 154751 631.2021 2978501 Fair Value Adjustment 2978501

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