Check my work mode: This shows what is correct or incorrect for the work you have completed Retu Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2021. 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. 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 entries required on the date of sale. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment January 2, 2022, for $290 million. Prepare the journal entries required on the date of sale. (If no entry is required fo transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded t decimal place, (i.e., 5,500,000 should be entered as 5.5).) No Date General Journal 1 January 02, 2022 Cash Investment in bonds Premium on bond investment Gain on investment (NI) 2 January 02, 2022 Cash Retained earnings Premium on bond investment Investment in bonds 3. January 02, 2022 Cash Retained earnings Premium on bond investment Investment in bonds < Req 3 Show less A Debit Credit 290.0 240.0 38 12 x 290.0 13.2 36.8 240.0 290.0 13.2 36.8 240.0 Prav 11 of 13 Next >