Journal entry worksheet Record interest on June 30, current year (the first interest payment). Note: Enter debits before credits. Journal entry worksheet Record entry to adjust the bonds to their fair value for presentation in the December 31 , current year, balance sheet. Note: Enter debits before credits. Journal entry worksheet Record interest on December 31 , current year (the second interest payment). Note: Enter debits before credits. On January 1 of the current year a company issued $280 million of its 6% bonds for $257 million. - The bonds were priced to yield 8%. - Interest is payable semiannually on June 30 and December 31. - The company records interest at the effective rate and elected the option to report these bonds at their fair value. - On December 31 of the current year, the fair value of the bonds was $270 million as determined by their market value in the over-the-counter market. - The company determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates. Required: 1. to 3. Prepare the journal entries to record interest on June 30 of the current year (the first interest payment), on December 31 of the current year (the second interest payment), and to adjust the bonds to their fair value for presentation in the December 31 , current year, balance sheet. Note: Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record interest on June 30, current year (the first interest payment). Note: Enter debits before credits. Journal entry worksheet Record entry to adjust the bonds to their fair value for presentation in the December 31 , current year, balance sheet. Note: Enter debits before credits. Journal entry worksheet Record interest on December 31 , current year (the second interest payment). Note: Enter debits before credits. On January 1 of the current year a company issued $280 million of its 6% bonds for $257 million. - The bonds were priced to yield 8%. - Interest is payable semiannually on June 30 and December 31. - The company records interest at the effective rate and elected the option to report these bonds at their fair value. - On December 31 of the current year, the fair value of the bonds was $270 million as determined by their market value in the over-the-counter market. - The company determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates. Required: 1. to 3. Prepare the journal entries to record interest on June 30 of the current year (the first interest payment), on December 31 of the current year (the second interest payment), and to adjust the bonds to their fair value for presentation in the December 31 , current year, balance sheet. Note: Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field