On January 1, 2021. Essence Communications issued $800,000 of its 10-year, 10% bonds for $708241. The bonds were priced to yield 12%. Interest is payable semiannually on June 30 and December 31. Essence Communications records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the market interest rate for bonds of similar risk and maturity was 11%. The bonds are not traded on an active exchange. The decrease in the market interest rate was due to a 1% decrease in general risk-free Interest rates. (FV of $1. PV of S1, FVA of S. PVA of $1, FVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. Using the Information provided, estimate the fair value of the bonds at December 31, 2021. 2 to 4. Prepare the journal entries to record interest on June 30, 2021 (the first interest payment), on December 31, 2021 (the second Interest payment and to adjust the bonds to their fair value for presentation in the December 31, 2021, balance shoot. Complete this question by entering your answers in the tabs below. Rei Reg 2 to 4 Using the information provided, estimate the fair value of the bonds at December 31, 2021. (Round final answer to the nearest whole dollar) Fair value of the bonds Reg 2 to 4 > On January 1, 2021. Escence Communications issued $800.000 of its 10-year 10% bonds for $708,241. The bonds were priced to yield 12%. Interest is payable semiannually on June 30 and December 31. Essence Communications records Interest at the effective rate and elected the option to report these bands at their fair value. On December 31 2021, the market interest rate for bonds of similar risk and maturity was 11%. The bonds are not traded on an active exchange. The decrease in the market Interest rate was due to a 1% decrease in general risk trees Interest rates (FV SI. PV of $1. FVA of $1. PVA of $. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required 1. Using the information provided, estimate the fair value of the bonds at December 31, 2021 2 to 4. Prepare the journal entries to record interest on June 30, 2021 (the first interest payment), on December 31, 2021 (the second interest payments and to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet Complete this question by entering your answers in the tabs below. RG 1 Reg 2 to 4 Prepare the journal entries to record interest on June 30, 2021 (the first interest payment), on December 31, 2021 (the second interest payment) and to adjust the bonds to their fair value for presentation in the December 31, 2021. balance sheet. (If no entries is required for a transactiot/event, select "No journal entries required" in the first account field. Round final answers to the nearest whole dollars.) show as View transaction est Journal entry worksheet 2 3 > Record the interest expense Wetenti di Date General Journal Debit Credit June 30, 2021 Recordantry Carany Record the interest expense Natet General Journal Debit Credit Date December 31, 2021 Record only Clear only View Rent On January 1, 2021. Essence Communications, issued $800.000 of ts 10-year, 10% bonds for $708,241. The bonds were priced to yield 12%. Interest is payable semiannually on June 30 and December 31 Essence Communications records interest at the effective rate and elected the option to report these bonds at their fair value On December 31, 2021, the market interest rate for bonds of similar risk and maturity was 11%. The bonds are not traded on an active exchange. The decrease in the market interest rate was due to a 1% decrease in general (riskree Interest rates. (FV of $1. PV of $1. EVA of S1. PVA of St. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided) Required: 1. Using the information provided, estimate the fair value of the bonds at December 31, 2021. 2 to 4. Prepare the journal entries to record interest on June 30, 2021 (the first interest payment on December 31, 2021 (the second Interest payment and to adjust the bonds to their fair value for presentation in the December 31, 2021. balance sheet Complete this question by entering your answers in the tabs below. Rea 1 Red 2 to 4 Prepare the journal entries to record interest on June 30, 2021 (the first interest payment), on December 31, 2021 (the second interest payment) and to adjust the bonds to their fair value for presentation in the December 31, 2021. balance sheet (If no antes is required for a transaction/event, select "No journal entries required in the first account fald. Round final as to the nearest whole dollars.) View transaction Journal entry worksheet Record the fair value adjustment ter General Journal Date December 31, 2021 Debit Credit Hacord entry Cewelry