Mills Corporation acquired as a long term investment $200 millon of 7% bonds, dated July 1, on July 1, 2018 Company management is holding the bonds in its trading portfolio. The market interest rate (yield was 5% for bonds of similar risk and maturity Mills paid $240 million for the bonds. The company will recelive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $210 million. Required: 1.& 2. Prepare the journal entry to record Mills Investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate. 3. At what amount will Mills report its investment in the December 31, 2018, 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, 2019, for $250 million Prepare the journal entries to record the sale 3 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2Req 3 Req 4 Prepare the journal entry to record Mills' investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (e, 5,500,000 should be entered as 5.5).) Investment in bonds 200.0O 400 Premium on bond investment Cash 2400 Mill Coporation acquired as a long term investment $200 million of 7% bonds, dated July 1, on July 1, 2018. Company management is holding the bonds in its trading portfolio. The market interest ra te (yield) was 5% for bonds of similar risk and maturity Mills paid $240 company will eceive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $210 million Required: effective (market) rate 10 points Prepare the journal entry to record Mills investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the 3. At what amount will Mills report its investment in the December 31, 2018, 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, 2019, for $250 million. Prepare the journal entries to record the sale & Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 At what amount will Mills report its investment in the December 31, 2018, balance sheet? (Enter your answer in millions rounded to 1 decimal place, (Le., 5,500,000 should be entered as 55).) s 3900 milion M Is Corporation acquired as a long-term investment $200 million of 7% bonds, dated July 1, on July 2018. Company management is holding the bonds in its trading portfolio. The market interest rate yield was 5% for bonds of similar risk and maturity MI paid $240 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, 2018, was $210 million. Required 1.& 2. Prepare the journal entry to record Mils Investment in the bonds on July 1. 2018 and interest on December 31. 2018, at the effective (market) rate 3. At what amount will Mills report its investment in the December 31, 2018, 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, 2019, for $250 mililion. Prepare the journal entries to record the sale. Answer is not complete. Complete this question by entering your answers in the tabs below Req 1 and 2 Req 3 Req 4 Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment Jarvuary 2, 2019, for $250 million. Prepare the journal entries to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. En decimal place, (ie, 5,500,000 should be entered as 5.5).) orn ter your answers in millions rounded to 1 Show less a Req 3 Prey 1ofll Score answer >
