please make sure to read all directions and put the answers in millions rounded to 1 decimal place.

For Example: 5,500,000 should be entered as 5.5

Part 1

Part 2

Part 3

Milts Corporation acquired as an investment 5260 million of 6% bonds, dated July 1 , on July 1,2021 . Company management is holding the bonds in its trading portfolso. The market interest rate (yield) was 4% for bonds of similar risk and matiarty Mets paid $300 million for the bonds. The company will receive interest semiannually on June 30 and December 31 . As a result of changing marked conditions. the fair value of the bonds at December 31.2021, was $280 million. Required: 1. \& 2. Prepare the jourral entry to record Mills" investment in the bonds on July 1,2021 and interest on Decenber 31,2021, at the effective (marices) rate 3. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31 , 2021 . 4. Suppose Moocy's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investinent on laniary 2 . 2022, for 5314 million. Prepare the journal entries required or the date of sale Camplete this quatstion by entatring your answers in the tabs below. Prepare the journal entry to record Milis" investment in the bonds on 3aly 1, 2021 and interest on Deceenber 31 , 2021 , at the effective (market) rate. (If rio entry is required for a transaction/event, belect "No journal entry required" In the first account lieid. Enter your aneweri in milliona rounded to I decimal place. (i.e., 5,500,000 should be entered as 5.5). Prepare the journal entry to record Mils' investment in the bonds on July 1,2021 and interest on December 31,2021 , at the effective (market) rate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answors in millions rounded to 1 decimal place, ( d.e. 45,500,000 should be entered as 5.5) ). Journal entry worksheet Record Mills' investment in the bonds on July 1,2021. Note: Enter debits befoce credits. Prepore the journat entry to record Mills' investment in the bonds on buly 1,2021 and interest on Decomber a1, 2021 , at the effectivat (market) rate. (If no entry de reqsired for a transactionvevent, 5elect. *o journal entry required" in the first account Geld, Fnter your answers in millilone rounded to 1 dedimal place, (i.e. 5,500,000 should be entered as 5.5)2). Journal entry worksheet Propare the journal entry by Miles to record any fair value adjustment necessary for the year ended December 31 , 2021. (it no entry is required for a transactionfevent, select "No journal entry required in the first account field, Enter your answers in miltions roended fo i. decirtal place, (i.e. 5,500,000 should be entered as 5.5)2) Journal entry worksheet Prepare any journal entry needed to adjust the invastment to fair value. Notel Enter debis before credits. Suppore Moody's bond rating agency upgradod the tisk rating of the bonds, and Mills decised to sell the invostrment on lanuary 2 . 2022. for $314 mition. Prepare the joumal entries required on the date of sale. (If no entry is required for a transactionievent, settect "fro journal ontry roquired" in the first account field. Finter your answers in millions rounded to 1 decirnal piace, (i.e. 5 , soo, 000 should be ariered as 5.5). showe lessh Journal entry worksheet Prepare any joumal entry needed to anjust the investment to fair value. Wocet Eiter or sta befare credits. Suppose Moody' bond rating agency upgrabed the risk rating of the bondo, and Milfs decided to soll the investiment an lanuzry 2 , 2022 . for $314 million. Prepare the journal entries roquired on the date of sale. (If no entry is required for a transactionfevert, select "fio fournal entry requlred" In the first account field. Enter your answers in migions rounded to 1 decimal place, (i.es, 5 , soo, ioo sheuld bes entered as:5.5).) thowe less a Journal entry worksheet Pecord the sale of the invostment by Mills. Nivel finter debits hefore credits