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 adjust the bonds to their fair value for presentation in the December 31, 2024, balance sheet, 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. Answer is not complete. 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 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. balance Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Increase in Balance Carrying Value Fair value adjustment Fair Value 01/01/2024 needed S 0 Increase (decrease) in Fair value adjustment 06/30/2024 12/31/2024 06/30/2025 0 12/31/2025 0 $ 739,813,200 $ 0 0 $ 0 0 730,000,000 0 0 $ 0 0 736,000,000 Bonds Payable Fair Value Adjustment 01/01/2024 739,813,200 01/01/2021 06/30/2024 12/31/2024 06/30/2021 12/31/2021 739,813,200 0 06/30/2025 06/30/2022 12/31/2025 12/31/2022 739,813,200 0 Calculation General Journal > Calculation General Journal Prepare the journal entries to adjust the bonds to their fair value for presentation in the December 31, 2024, balance sheet, 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. General Journal No Date 1 June 30, 2024 Interest expense Discount on bonds payable Cash 2 December 31, 202 Interest expense Discount on bonds payable Cash 3 December 31, 202 Fair value adjustment Gain on bonds payable (unrealized, OCI) 4 June 30, 2025 Interest expense Discount on bonds payable Cash 5 December 31, 202 Interest expense Discount on bonds payable Cash 6 December 31, 202 Loss on bonds payable (unrealized, NI) Loss on bonds payable (unrealized, OCI) Show less Debit 44,388,792 Credit 388,792 44,000,000 44,000,000 44,000,000 44,000,000