Exercise 14-30 (Algo) Reporting bonds at fair value [LO14-6] On January 1, 2024, Rapid Airlines issued $210 million of its 8% bonds for $193 milion. - The bonds were priced to yleld 10%. - Interest is payable semiannually on June 30 and December 31. - Rapid Airines records interest at the effective rate and elected the option to report these bonds at their fair value. - On December 31, 2024, the fair value of the bonds was $198 million as determined by their market value in the overame caunter market. - Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates Required: 1. to 3. Prepare the journal entries to record interest on June 30, 2024 (the first interest payment), on December 31,2024 (the second interest payment) and to adjust the bonds to their fair value for presentation in the December 31, 202.4, balance sheet Note: Enter your onswers in whole dollars. If no entry is required for a transoction/event, select "No journal entry required" in the first occount field. Journal entry worksheet Record interest on June 30,2024 (the first interest payment). Note: Enter debits before credits. Journal entry worksheet 3 Record interest on December 31,2024 (the second interest payment). Note: Enter debits before credits. Journal entry worksheet Record entry to adjust the bonds to their fair value for presentation in the December 31,2024 , balance sheet. Note: Enter debits before credits