Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $790 million on January 1, 2024. The bonds sold for $734,125,169 and mature on December 31, 2043 (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, 2024, the fair value of the bonds was $720 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 $726 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. General x at your turnounce the star asterr 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 Journe Debit Credt 1 June 30, 2004 47.718.136 218.136 47,400.000 December 31 2004 Dount on bonds p Cash December 31, ' 2024 4 June 30, 2025 December 31 2025 December 31 2025 Gain on bons payable C 47.736.815 33.815 14782.120 14782 120 Decount on bonds p Cash 47,400,000 Discount on bonds be 3,000,000 2254870 1254870