Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $800 million on January 1, 2018. The bonds sold for $726,393,662 and mature on December 31, 2037 (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, 2018, the fair value of the bonds was $710 million as determined by their market value in the over-the-counter market. Assume the fair value of the bonds on December 31, 2019 had risen to $716 million. Required Complete the below table to record the following journal entries. 1. & 2. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2018, balance sheet, and adjust the bonds to their fair value for presentation in theDecember 31, 2019, balance sheet. Federal determined that one-half of the increase in fair value was due to a decline in general interest rates. Complete this question by entering your answers in the tabs below General Journal Calculation Complete the below table to record the following journal entries. (Negative amount should be indicated by a minus sign. Round final answers to the nearest whole dollars.) Semiannual Period-End Unrealize Cash Interest Paid Bond Interest Expense Increase in Balance Carrying Value Fair Value Holding Gain loss Interest S 726,393,662 01/01/2018 06/30/2018 12/31/2018 06/30/2019 12/31/2019 0 0 0 0 0 S 710,000,000 0 O S 716,000,000 0 0 Bonds Payable Fair Value Adjustment 01/01/2018 06/30/2018 12/31/2018 726,393,662 01/01/2018 06/30/2018 12/31/2018 726,393,662 0 06/30/2019 06/30/2019 12/31/2019 12/31/2019 0 726,393,662 K Calculation General Journal >