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.

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 rlsk and maturity the market yleld was 12%. - Interest is pald semlannually on June 30 and December 31. - Federal determines interest at the effective rate. - Federal elected the option to report these bonds at thelr falr value. - On December 31,2024 , the falr value of the bonds was $730 million as determined by thelr market value in the over-the-counter market. Assume the fair value of the bonds on December 31,2025 , had risen to $736 million. Requlred: Complete the below table to record the following Journal entrles. 1. \& 2. Prepare the Journal entrles to record Interest on June 30,2024 , December 31,2024 , and adjust the bonds to thelr falr 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 falr value for presentation In the December 31, 2025, balance sheet. Federal determined that none of the change in falr value in 2024 was due to a decline in general Interest rates and one-half of the Increase in falr value in 2025 was due to a decline in general Interest rates. Complete this question by entering your answers in the tabs below. 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