Answer the questions that is correct for the table Req4

answer the questions for the journal entry worksheet

answer the questions for the journal entry worksheet

Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1. on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. 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. At what amount will Mills report its investment in the December 31, 2021, balance sheet? 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 entry to record the sale. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 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 entry to record the sale. (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).) Show less Debit No Credit General Journal Date X 290 % 1 January 02, 2022 Cash Gain on investments N) X 12 % X 38 X Premium on bond investment Investment in bonds x 240 X FF&T Corporation is a confectionery wholesaler that frequently buys and sells securities to meet various investment objectives. The following selected transactions relate to FF&T's investment activities during the last two months of 2021. At November 1, FF&T held $75 million of 30-year, 8% bonds of Convenience, Inc., purchased May 1, 2021, at face value. Management has the positive intent and ability to hold the bonds until maturity. FF&T's fiscal year ends on December 31. Nov. Dec 1 Received semiannual interest of $3.0 million from the convenience, Inc., bonds. 1 Purchased 10% bonds of Facsimile Enterprises at their $72 million face value, to be held until they mature in 2024. Semiannual interest is payable May 31 and November 30. 31 Purchased U.S. Treasury bills to be held until they mature in two months for $10.7 million. 31 Recorded any necessary adjusting entry(s) relating to the investments. The fair values of the investments at December 31 were: Convenience bonds Facsimile Enterprises bonds U.S. Treasury bills $71.7 million 22.9 million 10.7 million Requlred: Prepare the appropriate journal entry for each transaction or event (If no entry Is requlred for a transaction/event, select "No Journal entry required" In the first account field. Enter your answers In millions rounded to 1 decimal place (.e., 300,000 should be entered as 9.3).) View transaction list Journal entry worksheet 1 5 6 3 4 2 Received semiannual interest of $3.0 million from the Convenience, Inc., bonds. Note: Ente detits before Gredit A FF&T Corporation is a confectionery wholesaler that frequently buys and sells securities to meet various investment objectives. The following selected transactions relate to FF&T's investment activities during the last two months of 2021. At November 1, FF&T held $48 million of 20-year, 10% bonds of Convenience, Inc., purchased May 1, 2021, at face value. Management has the positive intent and ability to hold the bonds until maturity. FF&T's fiscal year ends on December 31. Nov. Dec. 1 Received semiannual interest of $2.4 million from the Convenience, Inc., bonds. 1 Purchased 12% bonds of Facsimile Enterprises at their $30 million face value, to be held until they mature in 2024. Semiannual interest is payable May 31 and November 30. 31 Purchased U.S. Treasury bills to be held until they mature in two months for $8.9 million. 31 Recorded any necessary adjusting entry(s) relating to the investments. The fair values of the investments at December 31 were: Convenience bonds Facsimile Enterprises bonds U.S. Treasury bills $44.7 million 30.9 million 8.9 million Required: Prepare the appropriate journal entry for each transaction or event (If no entry is requlred 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., 5,900,000 should be entered as 5.5).) View transaction list Journal entry worksheet 3 4. 5 1 6 Received semiannual interest of $2.4 million from the Convenience, Inc., bonds. Nete. Erdable before det Debit Credit General Journal