Federal Semiconductors issued 9% bonds, dated January 1, with a face amount of $810 million on January 1, 2024. The bonds sold for $740,505,700 and mature on December 31, 2043 (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, 2024, the fair value of the bonds was $730 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 $736 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. Semiannual Interest Period-End Cash Interest Bond Interest Increase in Carrying Value Fair Value Paid Expense Balance 01/01/2024 $740,505,700 06/30/2024 $ 0 0 12/31/2024 0 $730,000,000 06/30/2025 12/31/2025 0 0 0 0 0 0 $736,000,000 Bonds Payable Fair Value Adjustment 01/01/2024 740,505,700 01/01/2021 06/30/2024 06/30/2021 12/31/2024 12/31/2021 740,505,700 0 06/30/2025 06/30/2022 12/31/2025 12/31/2022 740,505,700 0 Fair value adjustment balance needed $ 0 Increase (decrease) in Fair value adjustment Calculation General Journal 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. 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 Journal No Date 1 June 30, 2024 Interest expense Discount on bonds payable Cash 2 3 December 31, 202 Interest expense Discount on bonds payable Cash December 31, 202 Fair value adjustment Gain on bonds payable (unrealized, OCI) 4 June 30, 2025 Interest expense 5 6 Discount on bonds payable Cash December 31, 202 Interest expense Discount on bonds payable Cash December 31, 202 Loss on bonds payable (unrealized, NI) Loss on bonds payable (unrealized, OCI) Fair value adjustment Show less Debit Credit