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Mills Corporation acquired as a long-term investment $245 million of 8% bonds, dated July 1, on July 1, 2021. Company management has the positive intent

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Mills Corporation acquired as a long-term investment $245 million of 8% bonds, dated July 1, on July 1, 2021. 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 31,2021 , was $260.0 million. Required: 1. \& 2. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2021 and interest on December 31,2021 , at the effective (market) rate. 3. At what amount will Mills report its investment in the December 31,2021 , 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 , 2022 , for $295 million. Prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Prepare the journal entry to record Mills' Investment in the bonds on July 1, 2021 and interest on December 31, 2021, 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, (1.e, 5,500,000 should be entered as 5.5).) Required: 1. \& 2. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2021 and interest on December 31,2021 , at the effective (market) rate. 3. At what amount will Mills report its investment in the December 31,2021 , 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 2022 , for $295 million. Prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2021 and interest on December 31, 2021, 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, ( (1.e,5,500,000 should be entered as 5.5).) Mills Corporation acquired as a long-term investment $245 million of 8% bonds, dated July 1 , on July 1, 2021. 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 31,2021 , was $260.0 million. Required: 1. \& 2. Prepare the journal entry to record Mills' investment in the bonds on July 1, 2021 and interest on December 31 , 2021, at the effective (market) rate. 3. At what amount will Mills report its investment in the December 31,2021 , 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 . 2022 , for $295 million. Prepare the journal entry to record the sale. Answer is not complete. Complete this question by entering your answers in the tabs below. At what amount will Mills report its investment in the December 31, 2021, balance sheet? (Enter your answer in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) Required: 1. \& 2. Prepare the journal entry to record Mills' investment in the bonds on July 1,2021 and interest on December 31,2021 , at the effective (market) rate. 3. At what amount will Mills report its investment in the December 31,2021 , 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 2022 , for $295 million. Prepare the journal entry to record the sale. Answer is not complete. Complete this question by entering your answers in the tabs below. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2,2022 , for $295 million. Prepare the journal entry to record the sale. (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, (1.e., 5,500,000 should be entered as 5.5).)

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