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 tair 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 Red 3 Req 4 Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31, 2021. (If no entry required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions rounded decimal place, (.e. 5,500,000 should be entered as 5.5).) View transaction list View journal entry worksheet NO General Journal Debit Credit Dato December 31 2021 Discount on bond investment 240.0 400 -16.0 View transaction list View journal entry worksheet No General Journal Debit Cred Date January 02, 2022 1 20.0 Fair value adjustment Gain on investment (unrealized, NI) 2 January 02, 2022 Cash 290.0 Investment in bonds Fair value adjustment