M Saved On January 1, 2021, Stony Walls issued $400,000 of its 8% bonds for $368,000. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Stony Walls records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $370,000 as determined by their market value on the NYSE $1,000 of the change in fair value was due to a change in the general (risk free) rate of interest. The rest of the change in fair value was due to a change in the credit risk associated with the bonds. Required: 1. Prepare the journal entry to record interest on June 30, 2021 (the first interest payment). 2. Prepare the journal entry to record interest on December 31, 2021 (the second interest payment). 3. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry to record interest on June 30, 2021 (the first interest payment). (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in whole dollars)