FOO ant ences Mills Corporation acquired as a long-term investment $240 million of 8% bonds, dated July 1, on July 1, 2024. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $280.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was $265.0 million. Required: 1. & 2. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market) rate. 3. At what amount will Mills report its investment in the December 31, 2024, balance sheet? 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2 2025, for $292 million. Prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req4 At what amount will Mills report its investment in the December 31, 2024, balance sheet? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place, (Le, 5,500,000 should be entered as 5.5) Investment $ 270 4 milion 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the Investment 2025, for $292 million. Prepare the journal entry to record the sale, Complete this question by entering your answers in the tabs below. Req 1 and 21 Req 3 Req 41 Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2 for $292 million. Prepare the journal entry to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round Intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5). Show View transaction list 1 Prepare any journal entry needed to adjust the Investment to fair value. 2 Record the sale of the investment by Mills, 10. 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2025, for $292 million. Prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 aces Prepare the journal entry to record Mills' investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market) rate. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5). Show less A View transaction list View journal entry worksheet Record Mill's investment in the bonds on July 1, 2024. Record interest on December 31, 2024. Debit Credit 240 0 400 280.0 Book ferences Mills Corporation acquired as a long-term investment $240 million of 8% bonds, dated July 1, on July 1, 2024, Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $280.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was $265.0 million. Required: 1. & 2. Prepare the journal entry to record Mills Investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market) rate 3. At what amount will Mills report its investment in the December 31, 2024, balance sheet? 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2 2025, for $292 million. Prepare the journal entry to record the sale Complete this question by entering your answers in the tabs below. Req 1 and 21 Req 3 Reg 4 Prepare the journal entry to record Mills' investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market) rate. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place, 0, 5,500,000 should be entered as 5.5) View transaction is View journal entry worksheet Debit Credit Show less