Exercise 12-11 Available-for-sale securities [L012-1, 12-4] Mills Corporation acquired as a long-term investment $290 million of 8% bonds, dated July 1, on July 1, 2018. Mills determined that it should account for the bonds as an available-for-sale investment. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $340 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, 2018, was $330 million. Required 1.&2. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate. Suppose Moody ond eting egeny upprae the tkrng ofthe band an M decided to sell he vestment on January 2. 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2019, for $350 million. Prepare the journal entries to record the sale