Marigold Corporation purchased trading investment bonds for $55,000 at par. At December 31, Marigold received annual interest of $2,200, and the fair value of the bonds was $52,500.
Prepare Marigold's 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.)