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On January 1, 2021, Rapid Airlines issued $295 million of its 6% bonds for $271 million The bonds were priced to yield 8%, Interest is

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On January 1, 2021, Rapid Airlines issued $295 million of its 6% bonds for $271 million The bonds were priced to yield 8%, Interest is payable semiannually on June 30 and December 31 . Rapid Aiflines records interest at the effective rate and elected the option to report these bonds at their fair value On December 31,2021 , the fair value of the bonds was $285 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fairvalue was due to a decline in general interest rates Required: 1. to 3. Prepare the joumal 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. (Enter your onswers in whole dollors. If no entry is required for o transoction/event, select "No journal entry required" in the first occount field.) Journal entry worksheet Record interest on June 30,2021 (the first interest payment). Netei Enter debits before ciedits. payable semiannually on June 30 and December 1 . Kapla Anthes fair value of the bonds was $285 report these bonds at their fair value. On December 31,2021 , the fair value of the bonds was $285 market value in the ovi general interest rates. Required: 1. to 3. Prepare the journal entries to record interest on June 30,2021 (the first interest payment), interest payment) and to adjust the bonds to their fair value for presentation in the December 31,2 answers in whole dollars. If no entry is required for a transoction/event, select "No journal entry field.) Journal entry worksheet Record interest on December 31,2021 (the second interest payment). Note: Enter debits before creditsi Required: 1. to 3. Prepare the journal entries to record interest on June 30,2021 (the first interest payment) interest payment) and to adjust the bonds to their fair value for presentation in the December 31 , answers in whole dollars. If no entry is required for a transaction/event, select "No journal ent field.) Journal entry worksheet Record entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet. Note: Enter debits before credits

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