Mills Corporation acquired as an investment $250 million of 6% bonds, dated July 1 , on July 1,2024 . 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 $300 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 $275 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. 3. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31 , 2024. 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2 , 2025 , for $312 million. Prepare the journal entries required on the date of sale. Journal entry worksheet Record Mills' investment in the bonds on July 1, 2024. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Prepare any journal entry needed to adjust the investment to fair value. Note: Enter debits before credits. Journal entry worksheet Prepare any journal entry needed to adjust the investment to fair value. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits