On January 1, 2020,CarlaCompany purchased12% bonds, having a maturity value of $308,000for $331,350.96. The bonds provide the bondholders with a10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year.CarlaCompany 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$329,000 2023$316,900 2021$316,200 2024$308,000

On January 1, 2020, Carla Company purchased 12% bonds, having a maturity value of $308,000 for $331,350.96. The bonds provide the bond holders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Carla Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classied as available-forsale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $329,000 2023 $316,900 2021 $316,200 2024 $308,000 2022 $315,100 (3) 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, e3. 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 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit (a) ( b) (To record interest received) (To record fair value adjustment) (c)