Federal Semiconductors issued 10% bonds, dated January 1, with a face amount of $770 million on January 1, 2016. The bonds sold for $708,222,420 and mature on December 31, 2032 (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, 2016, the fair value of the bonds was $690 million as determined by their market value in the over-the-counter market. Assume the fair value of the bonds on December 31, 2017 had risen to $696 million.

Required:

Complete the below table to record the following journal entries (Enter your answers in whole dollars.)

****** I NEED HELP WITH THE 12/31/2017 UNREALIZED HOLDING GAIN(LOSS) *********

THE ANSWER IS NOT -14186137, 6000000, 4965622 (THOSE ARE THE PREVIOUS ANSWERS PEOPLE TRY TO GIVE ME AND THEY ARE ALL INCORRECT.

1. & 2.

Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2016 and on December 31, 2017, balance sheet. Federal determined that one-half of the increase in fair value 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.)

****** I NEED HELP WITH THE LAST JOURNAL ENTRY ********

THE JOURNAL TITLES ARE CORRECT ALREADY, IF I TAKE OFF ONE IT COUNTS IT AS INCORRECT

PLEASE & THANK YOU!!

* Answer is complete but not entirely correct. Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Increase in Balance Carrying Value Fair Value Unrealized Holding Gain (loss) 01/01/2016 708,222,420 708,674,653 06/30/2016 $ 38,952,233s 38,977,106 39,003,347 39,031,031 38,500,000 38,500,000 38,500,000 38,500,000 452,233 477,106 503,347 531,031 12/31/2016 06/30/2017 12/31/2017 690,000,000 $ 19,151,759 709,151,759 709,655,106 710,186,137 696,000,000 $ 14,186,137 14,100,15 Fair Value Adjustment Net Liability (FMV) 01/01/2016 06/30/2016 12/31/2016 Bonds Payable 708,222,420 452.233 477,106 709,151,759 503,347 531,031 710,186,137 01/01/2016 06/30/2016 12/31/2016 $ 19,151,759 19,151,759 $ 690,000,000 06/30/2017 06/30/2017 12/31/2017 12/31/2017 14,186,137 33,337,896 S 676,848,241 Credit No 1 Date June 30, 2016 Debit 38,952,233 General Journal Interest expense Discount on bonds payable Cash 452,233 38,500,000 2 38,977,106 December 31, 201 Interest expense Discount on bonds payable Cash 477,106 38,500,000 3 19,151,759 December 31, 201 Fair value adjustment Unrealized holding gain - OCI 19,151,759 OOo Ooo ooo 00 000 000 4 June 30, 2017 39,003, 347 Interest expense Discount on bonds payable Cash 503,347 38,500,000 5 39,031,031 December 31, 201 Interest expense Discount on bonds payable Cash 531,031 38,500,000 6 December 31, 201 Unrealized holding loss - NI Unrealized holding gain - OCI Fair value adjustment * Answer is complete but not entirely correct. Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Increase in Balance Carrying Value Fair Value Unrealized Holding Gain (loss) 01/01/2016 708,222,420 708,674,653 06/30/2016 $ 38,952,233s 38,977,106 39,003,347 39,031,031 38,500,000 38,500,000 38,500,000 38,500,000 452,233 477,106 503,347 531,031 12/31/2016 06/30/2017 12/31/2017 690,000,000 $ 19,151,759 709,151,759 709,655,106 710,186,137 696,000,000 $ 14,186,137 14,100,15 Fair Value Adjustment Net Liability (FMV) 01/01/2016 06/30/2016 12/31/2016 Bonds Payable 708,222,420 452.233 477,106 709,151,759 503,347 531,031 710,186,137 01/01/2016 06/30/2016 12/31/2016 $ 19,151,759 19,151,759 $ 690,000,000 06/30/2017 06/30/2017 12/31/2017 12/31/2017 14,186,137 33,337,896 S 676,848,241 Credit No 1 Date June 30, 2016 Debit 38,952,233 General Journal Interest expense Discount on bonds payable Cash 452,233 38,500,000 2 38,977,106 December 31, 201 Interest expense Discount on bonds payable Cash 477,106 38,500,000 3 19,151,759 December 31, 201 Fair value adjustment Unrealized holding gain - OCI 19,151,759 OOo Ooo ooo 00 000 000 4 June 30, 2017 39,003, 347 Interest expense Discount on bonds payable Cash 503,347 38,500,000 5 39,031,031 December 31, 201 Interest expense Discount on bonds payable Cash 531,031 38,500,000 6 December 31, 201 Unrealized holding loss - NI Unrealized holding gain - OCI Fair value adjustment