On January 1, 2020, Pronghorn Company purchased $370,000, 8% bonds of Cabana Co. for $385,386. The bonds were purchased to yield 7% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Pronghorn Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Pronghorn Company sold the bonds for $377,800 after receiving interest to meet its liquidity needs. (c) (d) (e) Prepare the journal entries to record the semiannual interest on (1) July 1, 2020, and (2) December 31, 2020. If the fair value of Cabana bonds is $382,200 on December 31, 2021, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on January 1, 2021, is a credit of $3,257.) Prepare the journal entry to record the sale of the bonds on January 1, 2022. (Round answers to 0 decimal places, e.g. 2,500. 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 0 for the amounts.) No. (c) (1) (d) (e) (2) Date Account Titles and Explanation Debit