PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE. THANK YOU!

Exercise 12-6 (Algo) Trading securities (LO12-1, 12-3] Mills Corporation acquired as an Investment $240 million of 8% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market Interest rate yleld) was 6% for bonds of similar risk and maturity. Mills pald $280 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, 2021. was $265 million Required: 1. & 2. Prepare the journal entry to record Mills Investment in the bonds on July 1, 2021 and Interest on December 31, 2021, at the effective market) rate. 3. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31, 2021. 4. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2. 2022, for $292 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 Reg 3 Reg 4 Prepare the journal entry to record Mills'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 answers in millions rounded to 1 decimal place, i.e. 5,500,000 should be entered as 5.5).) View transaction lat Journal entry worksheet Record Mills' investment in the bonds on July 1, 2021. Note: Enter debits before credits General Journal Debit Credit Date July 01, 2021 Record entry Clear entry View general Journal Req 1 and 2 Req3 > Journal entry worksheet s'? Record interest on December 31, 2021. Note: Enter debits before credits General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general Journal Reg 1 and 2 Req3 > Req 1 and 2 Reg 3 Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions rounded to 1 decimal place, i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet Prepare any journal entry needed to adjust the investment to fair value. Note: Enter debits before credits General Journal Debit Credit Date December 31 2021 Record entry Clear entry View general Journal Req 1 and 2 Req4 > Req 1 and 2 Req 1 and 2 Req3 Req3 Req Reg 4 Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2022, For $292 million. Prepare the journal entries required on the date of sale. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions rounded to 1 decimal place, i.e., 5,500,000 should be entered as 5.5).) Show less View transaction lat Journal entry worksheet Prepare any journal entry needed to adjust the investment to fair value. Note: Enter debits before credits Date General Journal Debit Credit January 02 2022 Record entry Clear entry View general Journal Req3 Rege) Journal entry worksheet