answer the questions for Req3 and Req4

Answer the questions that are correct for the table

Mills Corporation acquired as an investment $240 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mills paid $280 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, 2021, was $270 million. Required: 1. & 2. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2021 and interest on December 31, 2021. at the effective (market) rate. 3. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31, 2021 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2022, for $290 million. Prepare the journal entries required on the date of sale. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Req 4 Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions rounded to 1 decimal place. (i.e., 5,500,000 should be entered as 5.5).) Debit No Credit General Journal Date 7.2 X 1 December 31, 202 Cash Interest revenue 50 X 1.6 X x Discount on bond investment Gain on investment (unrealized, NI) 8.4 % 8.4 X Fair value adjustment Mills Corporation acquired as an investment $240 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mills paid $280 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, 2021, was $270 million. Requlred: 1. & 2. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate. 3. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31, 2021 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2 2022, for $290 million. Prepare the journal entries required on the date of sale. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 5 Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2. 2022. for $290 million. Prepare the journal entries required on the date of sale. (If no entry is required for a transaction event selectio journal entry required in the first account field. Enter your answers in millions rounded to 1 decimal place. (l.e.. 5,500,000 should be entered as 5.5), ) Shoes View transaction list Journal entry worksheet 1 2 Prepare any journal entry needed to adjust the investment to fair value. On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $300 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid serniannually on March 31 and September 30. CV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Ure approprlate factor(s) from the tables provided.) Required: Determine the price of the bonds on September 30, 2021. (Enter your answers In whole dollars. Round your final answers to nearest whole dollar amount.) Table values are based on: = Cash Flow Amount Present Value Interest Principal Price of bonds