Exercise 14-29 (Algo) Reporting bonds at fair value [LO14-6] Federal Semiconductors issued 10% bonds, dated January 1, with a face amount of $820 million on January 1, 2021. The bonds sold for $754,210,889 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 11%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $740 million as determined by their market value in the over-the-counter market. Assume the fair value of the bonds on December 31, 2022 had risen to $746 million Required: Complete the below table to record the following journal entries. 1. & 2. Prepare the journal entries to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet, and adjust the bonds to their fair value for presentation in the December 31, 2022, balance sheet. Federal determined that none of the change in fair value in 2021 was due to a decline in general interest rates and one-half of the increase in fair value in 2022 was due to a decline in general interest rates. Complete this question by entering your answers in the tabs below. Calculation General Journal Complete the below table to determine the amounts for the journal entries. (Negative amount should be indicated by a minus sign. Round final answers to the nearest whole dollars.) Semiannual Interest Period-End Cash Interest Bond Interest Pald Expense Increase in Balance Carrying Value Fair Value Fair value adjustment balance needed Increase (decrease) in Fair value adjustment 01/01/2021 06/30/2021 $ 41,000,000 $ 41,418,599 $ 418,599 $754,210,889 754,629,488 $ 12/31/2021 41,000,000 41,508,087 06/30/2022 41,000,000 41,536,032 508,087 536,032 755,137,575 $740,000,000 $ 15.200.575 755,673,607 12/31/2022 41,000,000 41,565,513 565,513 756,239,120 $746,000,000 $ 15,200,575 (4.898.455) Check my work