Your answer is partially correct. On January 1, 2020, Oriole Company purchased 4% bonds, having a maturity value of $420,000 for $357,515. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2020, and mature January 1, 2027, with interest paid on June 30 and December 31 of each year. Oriole Company 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 2021 $359,000 2023 $379,000 $354,000 2024 $399,000 2022 $349,000 (a) 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, eg. 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 O for the amounts.) Date Account Titles and Explanation Debit Jan. 1,2020 Debt Investments Cash 357515 Jun. 30, 2020 Interest Receivable. 8400 Unrealized Holding Gain or Loss - Income 1613 Interest Revenue Dec. 31, 2020 Cash 8400 Unrealized Holding Gain or Loss-Income 1648 Interest Revenue (To record interest received) No Entry No Entry (To record fair value adjustment) Credit 357515 10048 10048 Jun. 30, 2020 Interest Receivable 8400 Unrealized Holding Gain or Loss - Income 1613 Interest Revenue Dec. 31, 2020 Cash 8400 Unrealized Holding Gain or Loss - Income 1648 Interest Revenue (To record interest received) No Entry Dec. 31, 2021 No Entry (To record fair value adjustment) Unrealized Holding Gain or Loss - Equity Fair Value Adjustment-Available-for-Sale -1776 10048 10048 -1776 0