Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $850 million on January 1, 2024. The bonds sold for $771,793,266 and mature on December 31, 2043 (20 years). For bonds of similar risk and maturity the market yield was 9%. 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 $760 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 $766 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. 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. Period-End Fair value adjustment balance needed Increase (decrease) in Fair value adjustment Semiannual Interest Cash Interest Bond Interest Increase in Paid Expense Balance Carrying Value Fair Value 01/01/2024 06/30/2024 12/31/2024 06/30/2025 0 12/31/2025 0 $771,793,266 $ 0 0 0 0 $760,000,000 0 0 0 0 $766,000,000 Bonds Payable Fair Value Adjustment 01/01/2024 771,793,266 01/01/2021 06/30/2024 12/31/2024 06/30/2021 12/31/2021 771,793,266 0 06/30/2025 12/31/2025 06/30/2022 12/31/2022 0 771,793,266 $ Calculation General Journal > 0