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  3. on january 1,2020, thackeray company purchased 5%

On January 1,2020, Thackeray Company purchased 5% bonds having a maturity value of...

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Accounting

On January 1,2020, Thackeray Company purchased 5% bonds having a maturity value
of $200,000 for $216,221.79. The bonds provide the bondholders with a 4% yield. They
are dated January 1,2020, and mature December 31,2029, with interest receivable
annually on December 31 of each year. Thackeray Company uses the effective-interest
method to allocate unamortized discount or premium and classifies the bonds as trading
securities. As of December 31,2020 the bonds have a fair (market) value of $214,000.
What adjusting journal entry (if any) should Thackeray Company record to adjust the
value of the bonds to their fair value as of December 31,2020?
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