Exercise 14-29 (Algo) Reporting bonds at fair value [LO14-6] Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $790 million on January 1, 2021. The bonds sold for $734.125,169 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 13%. 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 $720 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 $726 million. Required: Complete the below table to record the following journal entries. 1. & 2. Prepare the joumal 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.) Cash Interest Bond Interest Paid Expense Increase in Balance Carrying Value Fair Value Unrealized Holding Gain (loss) $734, 125, 169 Semiannual Interest Period-End 01/01/2021 06/30/2021 12/31/2021 08/30/2022 12/31/2022 $ 720,000,000 $ 728,000,000 Bonds Payable Fair Value Adjustment 01/01/2021 08/30/2021 12/31/2021 734, 125,189 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2022 12/31/2022 Calculation General Journal > Exercise 14-29 (Algo) Reporting bonds at falr value [LO14-6] Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $790 million on January 1, 2021. The bonds sold for $734,125,169 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 13%. 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 $720 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 $726 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 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. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list 1 Record the interest expense. > 2 Record the interest expense. Record entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet. Federal determined that none of the change in fair value was due to a decline in general interest rates. Credit 4 Record the interest expense. 5 Record the interest expense. 6 Record entry to adjust the bonds to their fair value for presentation in the December 31, 2022, balance sheet. -------------------- Note: = journal entry has been entered Exercise 14-29 (Algo) Reporting bonds at fair value [LO14-6] Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $790 million on January 1, 2021. The bonds sold for $734,125,169 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 13%. 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 $720 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 $726 million. Required: Complete the below table to record the following journal entries. 1. & 2. Prepare the joumal 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 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. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list 2 Record the interest expense. > Record entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet. Federal determined that none of the change in fair value was due to a decline in general interest rates. 4 Record the interest expense. Credit 5 Record the interest expense. 6 Record entry to adjust the bonds to their fair value for presentation in the December 31, 2022, balance sheet. Federal determined that one-half of the increase in fair value was due to a decline in general interest rates. = journal entry has been entered