Mills Corporation acquired as a long-term investment $300 million of 6% bonds, dated July 1, on July 1, 2018. Mills determined that it should account for the bonds as an available for sale investment. The market interest rate (Vield) was 4% for bonds of similar risk and maturity. Mills paid $350 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 $325 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 $360 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 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 $360 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 Meld. Enter your answers in milions rounded to i decimal place, (1.0, 5,500,000 should be entered as 5.5).) Show less View transaction list View journal entry worksheet No Event Credit 2 Debit 24.2 1 General Journal Fair value adjustment Unreal rod holding gain OCI 1 24,2 2 3 Roclassification adjustment OCI Fair value adjustment Reg 1 and 2 Reg 3 Reg 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 $360 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. Enter your answers in millions rounded to 1 decimal place, (ie, 5,500,000 should be entered as 5.5)) Show less View transaction list View journal entry worksheet . No Debit General Journal Event Credit 1 1 242 Fair value adjustment Unrealized holding gain-OCI 24.2 2 Reclassification adjustment-OCI Fair value adjustment 3 2. Cash Gain on sale of investments Premium on bond investment Investment in bonds