TamariskCorporation purchased trading investment bonds for $43,000at par. At December 31,Tamariskreceived annual interest of $1,720, and the fair value of the bonds was $40,200.

PrepareTamarisk' journal entries for (a) the purchase of the investment, (b) the interest received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.

List of Accounts:

• Accumulated Other Comprehensive Loss
• Allowance for Doubtful Accounts
• Allowance to Reduce Inventory to Market
• Bad Debt Expense
• Bonds Payable
• Cash
• Call Option
• Common Stock
• Cost of Goods Sold
• Debt Investments
• Dividend Revenue
• Dividend Receivable
• Equity Investments
• Fair Value Adjustment
• Futures Contract
• Gain on Sale of Investments
• Gain on Settlement of Call Option
• Gain on Settlement of Put Option
• Interest Expense
• Interest Receivable
• Interest Revenue
• Inventory
• Investment Income
• Loss on Impairment
• Loss on Sale of Investments
• Loss on Settlement of Call Option
• Loss on Settlement of Put Option
• No Entry
• Notes Payable
• Paid-in Capital in Excess of Par - Common Stock
• Put Option
• Recovery of Loss from Impairment
• Retained Earnings
• Revenue from Investment
• Sales Revenue
• Swap Contract
• Unrealized Holding Gain or Loss - Equity
• Unrealized Holding Gain or Loss - Income