Mills Corporation acquired as an investment $220 million of 6% bonds, dated July 1, on July 1, 2021 Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Mills paid $270 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 $250 million Required: 1.82. Prepare the journal entry to record Mills" investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the 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 $280 million. Prepare the journal entries required on the date of sale. Complete this question by entering your answers in the tabs below. Reg1 and 2 Reg 3 Reg 4 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 anterin million rounded to 1 decimal place, 5.500,000 should be entered a 5.5)) View transaction list Journal entry worksheet 1 > Record Mavestment in the bonds on July 1, 2021 Cat July 01. 201 General Journal Debit Credit ME Complete this question by entering your answers in the tabs below. Reg 1 and 2 Rega Reg4 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, (1.0, 5,500,000 should be entered as 5.5).) View transaction est Journal entry worksheet 2 cs Record interest on December 31, 2021. Note Enter debts before credits General Journal Debit December 31 2021 Record entry Clear entry View general journal BOL Complete this question by entering your answers in the tabs below. Reg 1 and 2 Regs Reg 4 Prepare the journal entry by Mils to record any fair value adjustment necessary for the year ended December 31, 2021. (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, (.e. 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet > Berences Prepare any journal entry needed to adjust the investment to fair value Notter det before credit General Journal Debit Credit Date December 31 2021 Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Red 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, 2022, for $200 million. Prepare the journal entries required on the date of 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, (t.e. 5,500,000 should be entered as 5.5).) Show less View transaction list Journal entry worksheet 1 2 Prepare any journal entry needed to adjust the investment to fair value at interdits before andit General Journal Debit Date January 02 2022 Credit Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Req4 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 $200 million. Prepare the journal entries required on the date of 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, (.. 5,500,000 should be entered as 55).) Show less View transaction list Journal entry worksheet
