On January 1, 2021, Spring Flowers Inc., a public company, purchased $600,000 of Daffodils Corporoation's 5 year, 4% bonds for $627,660 when the market interest rate was 3%. Interest is received semi-annually on July 1 and January 1. Spring Flowers year end is December 31. Spring Flowers intends to hold Daffodil Corporations bonds until maturity. The bonds' fair value of December 31, 2021 was $620,000.

Required:

1. Record all required transactions for 2021.

2. Prepare the entry to record the receipt of interest on January 1, 2022.