Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $800 million on January 1, 2024. . The bonds sold for $739,813,200 and mature on December 31, 2043 (20 years). For bonds of similar risk and maturity the market yield was 12%. 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 $730 million as determined by their market value in the over-the-counter market. Assume the fair value of the bonds on December 31, 2025, had risen to $736 million. 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. 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. Note: Negative amount should be indicated by a minus sign. Round intermediate calculations and final answers to the nearest whole dollars. Complete the below table to determine the amounts for the journal entries. Note: Negative amount should be indicated by a minus sign. Round intermediate calculations and final answers to the nearest whole dollars. Semiannual Interest Period-End Cash Interest Bond Interest Paid Expense Increase in Balance Carrying Value Fair Value Fair value adjustment balance needed Increase (decrease) in Fair value adjustment 01/01/2024 $ 739,813,200 $ 0 06/30/2024 $ 44,000,000 $ 44,388,792 388,792 740,201,992 12/31/2024 44,000,000 44,412,120 412,120 740,614,112 $730,000,000 10,614,112 06/30/2025 44,000,000 12/31/2025 44,000,000 44,436,847 44,463,057 436,847 741,050,959 463,057 741,514,016 $736,000,000 $ 5,514,016 Bonds Payable Fair Value Adjustment Net Liability(FMV) 01/01/2024 06/30/2024 12/31/2024 739,813,200 01/01/2021 388,792 06/30/2021 412,120 12/31/2021 10,614,112 740,614,112 10,614,112 $ 730,000,000 06/30/2025 12/31/2025 436,847 06/30/2022 463,057 12/31/2022 741,514,016 (5,100,096) 5,514,016 $ 736,000,000 Calculation General Journal > Calculation General Journal 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. Note: Round intermediate calculations to nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 Record the interest expense. Note: Enter debits before credits. Date June 30, 2024 General Journal Debit Credit Show less