Mills Corporation acquired as an investment $200 million of 7% bonds, dated July 1, on July 1, 2021. 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 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 $210 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. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31, 2021. 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 $250 million. Prepare the journal entries required on the date of sale. Journal entry worksheet Record Mill's investment in the bonds on July 1, 2021. Note: Enter debits before credits. General Journal Debit Credit Date July 01, 2021 Record entry Clear entry View general journal Journal entry worksheet Record interest on December 31, 2021. Note: Enter debits before credits. General Journal Debit Credit Date December 31 2021 Record entry Clear entry View general journal Journal entry worksheet Record the fair value adjustment Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general journal Journal entry worksheet Record the entry to adjust the fair value. Note: Enter debits before credits. General Journal Debit Credit Date January 02, 2022 Record entry Clear entry View general journal Journal entry worksheet