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 (yield) 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 d 2Reg3 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, (i.e., 5,500,000 should be entered as 5.5).) Investment million 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 S360 t account e llion. Prepare the journal entries to record the sale f no entry is required ora transaction event select No our a entry Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) i ed in he View transaction list Journal entry worksheet 2 3 Update the fair-value adjustment. Note: Enter debits before credits Event General Journal Debit Credit 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. (Ifno entry is required for a transaction/event, select No journal Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) entry required" in the first account field. View transaction list Journal entry worksheet 3 Record the sale of the investment by Mills. Note: Enter debits before credits Event General Journal Debit Credit 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 (F no entry s required for a transaction event, select No Journal entry required n the first account field. Enter your answers in millions rounded to 1 decimal place, (i.c., 5.500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 2 Record the updating the fair-value adjustment. Note: Enter debits before credits Event General Journal Debit Credit