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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

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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 yieid 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 tisen 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 202.5 was due to a decline in general interest rates. 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. Journal entry worksheet 234 Note: Enter debits before credits. Journal entry worksheet Record the entry to adjust the bonds to their fair value for presentation in the December 31,2024 , balance sheet. Federal determined that none of the change in fair value was due to a decline in general interest rates. Note: Enter debits before credits. Journal entry worksheet

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