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Milis Corporation acquired as an imvestment $300 milion of 7% bonds, dated July 1, on July 1, 2024. Comparry management is holding the bonds in its trading portfolio. The market interest rate (yield) was 5% for bonds of similar risk and maturity. Mills paid $340 million for the bonds. The company will receive interest semiannually on June 30 and December 31 . As a result of changing market conditions, the fair value of the bonds at December 31.2024 , was $320 million. Requlred: 1. \& 2. Prepare the joumal entry to record Mill' investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market) rate. 3. Prepare the joumal entry by Mills to record any fair value adjustment necessary for the year ended December 31,2024 . 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mils decided to sell the investment on January 2.2025, for $352 million. Prepare the journal entries required on the date of sale. Complete this question by entering your answers in the tabs below. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2024 and interest on Docember 31, 2024, at the effective (markint) rate. Noter If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations, Enter vour answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5). Joumal entry worksheet 2 Record Mils' investmment in the boeds on July 1, 2024. Requlred: 1. 4 2. Prepare the joumal entry to record Milis' imvestment in the bonds on July 1,2024 and interest on December 31, 2.024, at the eliective (market) rate 3. Prepare the joumai entiy by M.1/s to record any fair value adjustment necessary for the year enided December 31, 2024. 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mils decided to sell the investment on January 2. 2025. for $352 milion. Prepore the joumal entries required on the date of sale Complete this question by entering your answers in the tabs below. Propare the journal entry by Mils to record any fair vake adjustment nechsary for the year ended December 11. 2024. Hotel If ne entyy a requind for a transaction/event seloct Wo journal ertery tequired an the frit accourt field, Do net round Jourmal entry worksheet PTepare any journal entry needed to adjust the inyestmene to far value. Requlred: 1. \& 2. Prepare the joumal entry to record Mil's' investment in the bonds on July 1,2024 and interest on December 31, 2024, at the effective imarket) rate. 3. Prepare the joumal entry by Mais to record any fair value adjustment necessary for the year ended December 3t, 2024. 4. Suppose Moody's bond rating agency upgroded the risk rating of the bonds, and Mills decided to sell the investment on January 2. 2025, for 5352 million. Prepare the journal entries required on the date of sale. Complete this question by entering your answers in the tabs below. Suppose Moody's bond rating agency upgraded the riak rating of the bonds, and Mils decided to sell the imvestment an laruary 2,2025 . for 5352 million. Prepare the joumal entries required on the date of sale. Noter Il no entry in requined for a transaction/event, select "No joumal entry required" in the firnt acrount field. Do not round intermediate calculations, Enter rour answers in millions rounded to 1 decimal place, (Ge. 5.500 .000 should be entered as 5.5 ). Journal entry worksheet 2 Arepare any journal entry needed to adjuit the inventment to fair value
