For the journal entries:

1. Record the interest expense (June 30, 2021)

2. Record the interest expense (Dec 31, 2021)

3. Record entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet. Federal determined that none of the change in fair value was due to a decline in general interest rates.

4. Record the interest expense (June 30, 2022)

5. Record the interest expense (Dec 31, 2022)

6. Record entry to adjust the bonds to their fair value for presentation in the December 31, 2022, balance sheet. Federal determined that one-half of the increase in fair value was due to a decline in general interest rates.

Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $850 million on January 1, 2021. The bonds sold for $771,793,266 and mature on December 31, 2040 (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, 2021, 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, 2022 had risen to $766 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. Complete this question by entering your answers in the tabs below. Calculation General Journal Complete the below table to determine the amounts for the journal entries. (Negative amount should be indicated by a mir Round final answers to the nearest whole dollars.) Calculation General Journal Complete the below table to determine the amounts for the journal entries. (Negative amount should be indicate Round final answers to the nearest whole dollars.) Semiannual Interest Unrealized Cash Interest Bond Interest Increase in Carrying Value Fair Value Period-End Paid Holding Gain Expense Balance (loss) 01/01/2021 $ 771,793,266 06/30/2021 S 0 0 12/31/2021 0 0 $ 760,000,000 06/30/2022 0 12/31/2022 0 0 0 $ 766,000,000 0 0 Fair Value Adjustment 01/01/2021 06/30/2021 12/31/2021 Bonds Payable 771,793,266 01/01/2021 06/30/2021 12/31/2021 771,793,266 06/30/2022 12/31/2022 771,793,266 0 06/30/2022 12/31/2022 Prepare the journal entries to adjust the bonds to their fair value for presentation in the December 31, 2021, balance shee 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. (Enter your answers in whole dollars. If no entry is required fc transaction/event, select "No journal entry required" in the first account field.) Show less No Date General Journal Debit Credit June 30, 2021 Cash 771,793,266 Discount on bonds payable 78,206,734 Bonds payable 850,000,000 2 December 31, 202 Interest expense Discount on bonds payable Cash