er 12 Homework 5 20 Exercise 12-11 (Algo) Available-for-sale securities; financial statement effects [LO12-1, 12-4] Mills Corporation acquired as a long-term investment $220 million of 6% bonds, dated July 1, on July 1, 2024 Company management has classifed the bonds as an available-for-sale Investment. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mins paid $270 million for the bonds. The company will receive interest semiannuaily on June 30 and December 31 As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was $250 mon Required: 1. & 2. Prepare the journal entry to record Mills' Investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market) rate 3. At what amount will Mills report its investment in the December 31, 2024, 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 2025, for $280 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 Req 3 Req 4 Prepare the journal entry to record Mills' investment in the bonds on July 1, 2024 and interest on December 31, 2024, 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, (ie, 5,500,000 should be entered as 5.5). View transaction list Show less