Federal Semiconductors issued 9% bonds, dated January 1, with a face amount of $910 million on January 1, 2021. The bonds sold for $831,926,157 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 10%. 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, 2021, the fair value of the bonds was $820 million as determined by their market value in the over-the-counter market. Assume the fair value of the bonds on December 31, 2022 had risen to $826 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, 2021, balance sheet, and adjust the bonds to their fair value for presentation in the December 31, 2022, balance sheet. Federal determined that none of the change in fair value in 2021 was due to a decline in general interest rates and one-half of the increase in fair value in 2022 was due to a decline in general interest rates.

Calculation General Journal Book Complete the below table to determine the amounts for the journal entries. (Negative amount should be indicated by a min Round final answers to the nearest whole dollars.) Hint Bond In Files Paid Increase in Balance Print References Periodind 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $ 40,950,000 $41.500,300 $ 40,950,000 41.628.623 40.950.000 41.002.554 40,950,000 41,698,182 646,308 078,623 712,554 748,182 Carrying Valu Fair value Holding in 00) $831,026,157 832.572,465 833,251,088 $820,000,000 $ 13,251.088 833,903,042 834,711,824 5826,000,000 $ 8.711,824 Fair Value Adjustment Net Liability FMV) 01/01/2021 06/30/2021 12/31/2021 Bonds Payable 831,926,157 01/01/2021 646,308 06/30/2021 078,623/12/31/2021 833,251.038 712,55400/30/2022 748.182 12/31/2022 834,711,024 $ 13.251.038 13.251.0BB $ 820,000,000 06/30/2022 12/31/2022 (4.539.264) 8.711.824 $ 820.000.000 General Journal >