On January $1,$ Sharp Company purchased $$40,000$ of Sox Company $5\%$ bonds, at a time when the market rate was $6\%.$ The bonds mature on December $31$ in five years, and pay interest semiannually on June $30$ and December $31.$ Sharp plans to and has the ability to hold the bonds until maturity. Assume that Sharp uses the effective interest method to amortize any premium or discount on investments in bonds. At June $30,$ the bonds are quoted at $98.$

Note: When answering the following questions, round answers to the nearest whole dollar.

a$.$ Prepare the entry for the purchase of the debt investment on January $1.$

$\backslash$table$[[$Date$,$Account Name,Debit,Credit$],[$Jan$,1,$To record the purchase of investment.,$0,0]]$

b$.$ Prepare the entry for the receipt of interest on June $30.$

$\backslash$table$[[$Date$,$Account Name,Debit,Credit$],[$June $30,4,0,0],[,,,]]$

c$.$ Record the entry to adjust the investment to fair value on June $30,$ if applicable.

Note: If a journal entry isn't required for the transaction, select $"$N$/$A$$Debit$"$ and $"$N$/$A$$Credit$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$

$\backslash$table$[[\backslash$table$[[$Date$],[$June $30]],$Account Name,,Debit,Credit$],[,*{*}^{},0,0],[,*{*}^{},0,0],[,$To adjust investment to fair value.,,,$]]$