ok mces Mills Corporation acquired as a long-term investment $225 million of 8% bonds, dated July 1, on July 1, 2024. Company management has classified the bonds as an available-for-sale investment. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $250 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 $240 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. At what amount will Mills report its Investment in the December 31, 2024, balance sheet? 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 $266 million. Prepare the journal entries required on the date of sale. Complete this question by entering your answers in the tabs below. Req 1 and 21 Req 3 Req 4 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (Le, 5,500,000 should be entered as 5.5), View transaction list Show less & Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be en View transaction list 1 Record Mill's investment in the bonds on July 1, 2024. 2 Record interest on December 31, 2024. journal entry has been entered Note: Record entry x bit Credit Clear entry View general journal 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 th effective (market) rate. 3. At what amount will Mills report its investment in the December 31, 2024, balance sheet? 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on Janua 2025, for $266 million. Prepare the journal entries required on the date of sale. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 At what amount will Mills report its investment in the December 31, 2024, balance sheet? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place, (l.e., 5,500,000 should be entered as 5.5). Investment million < Req 1 and 2 Req 4 > intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be en View transaction list Journal entry worksheet 2 3 Record the fair-value adjustment. Note: Enter debits before credits. Date January 02, 2025 General Journal Debit Credit Record entry Clear entry View general journal 2020, 1932 Separe une joueurs required on rea Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 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 $266 million. Prepare the journal entries required on the date of sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round Intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (ie., 5,500,000 should be entered as 5.5). View transaction list 1 Record the fair-value adjustment. 2 Record any reclassification adjustment. 3 Record the sale of the investment by Mills X De Credit Show less nces Mills Corporation acquired as a long-term investment $225 million of 8% bonds, dated July 1, on July 1, 2024, Company management has classified the bonds as an available-for-sale investment. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $250 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 $240 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. At what amount will Mills report its investment in the December 31, 2024, balance sheet? 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 $266 million. Prepare the journal entries required on the date of sale. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 31 Reg 4 (market) rate Prepare the journal entry to record Mills' investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective Note: If no entry is required for a transaction/event, lect "No journal entry required" in the first account field. Do not round Intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (e, 5,500,000 should be entered as 5.5) View transaction fist Show less