Exercise 12-6 (Algo) Trading securities [LO12-1, 12-3] Mills Corporation acquired as an investment $260 million of 5% bonds, dated July 1 , an July 1,2024 . Company management is holding the bonds in its trading portfolio. The market interest rate (yield) wes 3% for bonds of similar risk and maturity. Mills paid $300 million for the bonds. The campany will receive interest semiannusally on June 30 and December 31 . As a fesult of changing market conditions, the fair value of the bonds at December 31,2024 , wes $280 million. 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 imarket) rate. 3. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31 , 2024. 4. Suppose Moody's bond rating agency upgreded the risk rating of the bonds, and Mills docided to sell the investment on January 2,2025 , for $315 million. Prepare the journal entries required on the date of sale. Complete this question by entering your answers in the tabs below. 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 $315 million. Prepare the journal entries required on the date of sale. 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, (i.e., 5,500,000 should be entered as 5.5). Journal entry worksheet Prepare any journal entry needed to adjust the investment to fair value. Note: Enter debits before credits