Exercise 12-2 (Algo) Securities held-to-maturlty; bond Investment; effective interest, premlum [LO12-1] Mills Corporation acquired as a long term investment S230 million of 8% bonds, dated July 1, on July 1, 2021 Company management a has the positive intent and ability to hold the bonds until matunty. The market interest rate yield) was 6% for bonds of similar risk and maturity. Mills paid $260,0 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 $250.0 million Required: 1. & 2. Prepare the journal entry to record Mits' investment in the bonds on July 1 2021 and interest on December 31, 2021. at the effective market rate 2. At what amount will Mills report its investment in the December 31, 2021, balance sheet? 4. Suppose Moody bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2. 2022. for $270 million Prepare the journal entry to record the sale