A company acquired as a long-term investment $300 million of 6% bonds, dated July 1 , on July 1 , Year 1 . Company management has classified the bonds as an available-for-sale investment. The market interest rate (yield) was 4% for bonds of similar risk and maturity. The company paid $350 million for the bonds. The company will receive interest semiannually on June 30 and December 31 . As a esult of changing market conditions, the fair value of the bonds at December 31, Year 1, was \$325 million. Required: 1. \& 2. Prepare the journal entry to record the company's investment in the bonds on July 1, Year 1 and interest on December 31, Year 1 , the effective (market) rate. 3. At what amount will the company report its investment in the December 31, Year 1, balance sheet? 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and the company decided to sell the investment on January 2, Year 2, for $360 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 the company's investment in the bonds on July 1, Year 1 and interest on December 31, Year 1, at the effective (market) rate. Note: 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 your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5). Show less