D Berhad issued 7% bonds, with a principal amount of RM4,000,000 on January 1, 2022. The bonds sold for RM 3,731.597 and mature in 2031 (10 years). For bonds of similar risk and maturity, the market yield was 8%. Interest is paid annually on 31 December. D Berhad determines interest at the effective rate. D Berhad elected the option to report these bonds at their fair value. On December 31, 2022, the fair value of the bonds was RM3,740,000 as determined by their market value in the over-thecounter market. Required: (i) Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31. 2022. statement of financial position. Sotong Berhad determined that none of the change in fair value was due to a decline in general interest rates. (6 marks) (il) Assume the fair value of the bonds on December 31,2023 , had risen to RM3770,000. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2023, statement of financial position. D Berhad determined that one-half of the increase in fair value was due to a decline in general interest rates. (6 marks) URGENT D Berhad issued 7% bonds, with a principal amount of RM4,000,000 on January 1, 2022. The bonds sold for RM 3,731.597 and mature in 2031 (10 years). For bonds of similar risk and maturity, the market yield was 8%. Interest is paid annually on 31 December. D Berhad determines interest at the effective rate. D Berhad elected the option to report these bonds at their fair value. On December 31, 2022, the fair value of the bonds was RM3,740,000 as determined by their market value in the over-thecounter market. Required: (i) Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31. 2022. statement of financial position. Sotong Berhad determined that none of the change in fair value was due to a decline in general interest rates. (6 marks) (il) Assume the fair value of the bonds on December 31,2023 , had risen to RM3770,000. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2023, statement of financial position. D Berhad determined that one-half of the increase in fair value was due to a decline in general interest rates. (6 marks) URGENT