Riverbed Company invests $9,700,000 in 4% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates have declined, and the fair value of the bonds is now $10,194,000. Interest is paid on January 1. Prepare journal entries for Riverbed Company to (a) record the transactions related to these bonds in 2017, assuming Riverbed does not elect the fair option; and (b) record the transactions related to these bonds in 2017, assuming that Riverbed Company elects the fair value option to account for these bonds. (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.) PLEASE DO NOT TRY THIS IF YOU DO NOT KNOW HOW.

Interest Revenue To record interest revenue) Fair Value Adjustment 388000 Unrealized Holding Gain or Loss Equity To record fair value adjustment) Account Titles and Explanation No. Date Debit Credit (b) Jan. 1, 2017Equity Investments 9700000 Cash 9700000 Dec. 31, 2017Interest Receivable 388000 Interest Revenue 388000 To record interest revenue) Unrealized Holding Gain or Loss Income 494000 Equity Investments 494000 To record fair value adjustment)