On January 1, 2020, Novak Company purchased 12% bonds, having a maturity value of $304,000 for $327,047.70. 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. Novak 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 $324,800 2021 $312,700 2022 $311,800 2023 2024 $313,800 $304,000 (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. Jan. 1, 2020 Debt Investments 327,047.70 Cash 327,047.70 (b) Dec. 31, 2020 Interest Receivable 36480 Debt Investments 3775.23 Interest Revenue 32704.77 (To record interest received) Fair Value Adjustment 1527.53 Unrealized Holding Gain or Loss - Equity 1527.53 (To record fair value adjustment) () Dec. 31, 2021 Unrealized Holding Gain or Loss - Equity 4892.19 Fair Value Adjustment 4892.19