Mills Corporation acquired as an investment $$240$ million of $7\%$ bonds, dated July $1,$ on July $1,2024.$ Company management is holding the bonds in its trading portfolio. The market interest rate $($yield$)$ was $5\%$ for bonds of similar risk and maturity. Mills paid $$280$ 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 $31,2024,$ was $$260$ million.

Required:

$1.$ & $2.$ Prepare the journal entry to record Mills$$ investment in the bonds on July $1,2024$ and interest on December $31,2024,$ at the effective $($market$)$ rate.