Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $890 million on January 1, 2016. The bonds sold for $827,052,405 and mature on December 31, 2032 (20 years). For bonds of similar risk and maturity the market yield was 13%. 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 $810 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 $816 million.

Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $890 million on January 1, 2016. The bonds sold for $827,052,405 and mature on December 31, 2032 (20 years). For bonds of similar risk and maturity the market yield was 13%. 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 $810 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 $816 million Required Complete the below table to record the following journal entries (Enter your answers in whole dollars.) Semiann Cash Interest Bond Interest Increase in Carrying Value Fair Value Paid Unrealized Holding Gain loss Interest Expense Balance Period-End $827,052,405 01/01/2016 06/30/2016 12/31/2016 06/30/2017 12/31/2017 0 0 0 0 0 0 $810,000,000 0 0 $816,000,000 0 0 Bonds Payable Fair Value Adjustment 01/01/2016 06/30/2016 12/31/2016 827,052,405 01/01/2016 06/30/2016 12/31/2016 827,052,405 0 06/30/2017 06/30/2017 12/31/2017 12/31/2017 827,052,405 0 Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $890 million on January 1, 2016. The bonds sold for $827,052,405 and mature on December 31, 2032 (20 years). For bonds of similar risk and maturity the market yield was 13%. 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 $810 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 $816 million Required Complete the below table to record the following journal entries (Enter your answers in whole dollars.) Semiann Cash Interest Bond Interest Increase in Carrying Value Fair Value Paid Unrealized Holding Gain loss Interest Expense Balance Period-End $827,052,405 01/01/2016 06/30/2016 12/31/2016 06/30/2017 12/31/2017 0 0 0 0 0 0 $810,000,000 0 0 $816,000,000 0 0 Bonds Payable Fair Value Adjustment 01/01/2016 06/30/2016 12/31/2016 827,052,405 01/01/2016 06/30/2016 12/31/2016 827,052,405 0 06/30/2017 06/30/2017 12/31/2017 12/31/2017 827,052,405 0