Final answer:
To record the fair value of available-for-sale bonds on December 31, 2017, a journal entry would adjust equity and comprehensive income accounts based on unrealized gains or losses, but the exact entry requires the original cost of the bonds.
Step-by-step explanation:
If the bonds are classified as available-for-sale and have a fair value on December 31, 2017, of $3,604,000, the journal entry to record this transaction would reflect any unrealized gains or losses that have occurred since the bonds were acquired. The journal entry would typically credit or debit an equity account (such as an Available-for-Sale Securities Fair Value Adjustment account) and debit or credit an account that represents the opposite effect on the comprehensive income. The actual accounts involved would depend on the initial cost of the bonds and whether the fair value represents an increase or decrease in value since purchase. However, without knowing the original cost of the bonds, we cannot provide the specific journal entry amounts.