On January $1,2025,$ Martinez Company purchased $\backslash (12\backslash \%\backslash )$ bonds having a maturity value of $\backslash (\backslash$$ $278,000\backslash )$ for $\backslash (\backslash$$ $299,076\mathrm{.}51\backslash ).$ The bonds provide the bondholders with a $10\backslash \%$ yield. They are dated January $1,2025,$ and mature January $1,2030,$ with interest received on January $1$ of each year. Martinez 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.

$($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 $2025.$

$($c$)$ Prepare the journal entry to record the recognition of fair value for $2026.$

$($List all debit entries before credit entries. 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. Round answers to $2$ decimal places, e$.$g$.1225\mathrm{.}25.)$

Debt Investments

Interest Receivable

$($To record interest received$)$

Fair Value Adjustment

Unrealized Holding Gain or Loss $-$ Equity

$($To record fair value adjustment$)$

Unrealized Holding Gain or Loss $-$ EquityI