Mills Corporation acquired as an investment $240 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 $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, 2021 was $270 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 $290 million Prepare the journal entries required on the date of sale Reg 1 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 answers in millions rounded to 1 decimal place, (le, 5,500,000 should be entered as 5.5).) Credit No 1 Date July 01, 2021 General Journal Investment in bonds Premium on bond investment Debit 2400 400 BIO 2800 Cash 2 December 31, 202 Cash 720 40.0 Premium on bond investment Cash 280 03 R1 and Req3 > Reg 1 and 2 Reg 3 Reg 4 Prepare the journal entry by Mills 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, (1.0, 5,500,000 should be entered as 5.5).) No Date Goneral Journal Debic Credit 1 December 31, 202 Loss on investment (NI) Fair value adjustment ( Req 1 and 2 Reg 4 > 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, 2022, for $290 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, (1.e., 5,500,000 should be entered as 5.5).) Show less Debit Credit Na Date General Journal