Exercise 14.29 (Algo) Reporting bonds at fair value [LO14-6] Federal Semiconductors issued 10% bonds, dated January 1 , with a face amount of $770 million on January 1,2024. - The bonds sold for $708,222,420 and mature on December 31,2043 (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, 2024, the fair value of the bonds was $690 million as determined by their market value in the over-the-counte market. Assume the fair value of the bonds on December 31, 2025, had risen to $696 milion. Required: Complete the below table to record the following journal entries. 1. \& 2. Prepare the journal entries to record interest on June 30,2024, December 31, 2024, and adjust the bonds to their fair value for presentation in the December 31,2024 balance sheet, and record interest on June 30,2025, December 31,2025 , and adjust the bonds to their fair value for presentation in the December 31,2025 , balance sheet. Federal determined that none of the change in fair value in 2024 was due to a decline in general interest rates and one-half of the increase in fair value in 2025 was due to a decline in general interest rates