On January 1, 2016, Rapid Airlines issued $250 million of its 6% bonds for $234 million. The bonds were priced to yield 8%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2016, the fair value of the bonds was $239 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates.

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Prepare the journal entry to record interest on June 30, 2016 (the first interest payment), on December 31, 2016 (the second interest payment) and adjust the bonds to their fair value for presentation in the December 31, 2016, balance sheet. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) Journal entries 1. Record entry to interest on June 30, 2016 (the first interest payment) 2. Record entry to interest on December 31, 2016 (the second intrest payment) 3. Record entry to adjust the bonds to their fair value for presentation in the December 31, 2016, balance sheet. * I would like to get a answer from the expert that make sure the answer is right and please provide step by step calculated. Thanks,