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240 milion of 6% bonds, dated July 1, on July 1, 2 18 Mills determined that it sale investment The market interest rate (yield) was
240 milion of 6% bonds, dated July 1, on July 1, 2 18 Mills determined that it sale investment The market interest rate (yield) was 4% for bonds of similar risk and Mills Corporation acquired as a long-term investment $ hould account for the bonds as an available-for maturity. Mills paid $280 million for the bonds. The company will receive interest semiannually on Jun esult of changing market conditions, the fair value of the bonds at December 31, 2018, was $270 million e 30 and December 31. As a Required: , & 2. Prepare the journal entry to record Mills investment in the bonds on July 1. 2018 and interest on December 31, 2018, at the effective (market) rate 3. At what amount will Mills report its investment in the December 31, 2018, balance sheet? 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mils detided to sell the investment on January 2, 2019, for $290 million. Prepare the journal entries to record the sale
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