What should the red box be ?

On January 1, 2020, Hi and Lois Company purchased 12% bonds, having a maturity value of $300,000 for $322,744.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Hi and Lois 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 2022 $320,500 $309,000 $308,000 2023 2024 $310,000 $300,000 (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. No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2020 Debt Investments 322,744.44 > Cash 322,744.44 (b) Dec. 31, 2020 Cash 36,000 Debt Investments 3,725.56