Hills Corporation acquired as an investment 565 million of 8% bonds, dated July 1, 1. veact Company management is holding the bonds in its trading portfolio. The man interest rate field was 6% for bonds of similar risk and maturity Hills paid $68 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. year 1. was $66 million Required: 1. Prepare the journal entry to record Hills investment in the bonds on July 1 year 1 2 Prepare the journal entry by Hills to record interest on December 31, year 1, at the effective (market) rate. 3. Prepare the journal entry by Hills to record any fair value adjustment necessary for the year ended December 31, year 1. Suppose KP's bond rating agency upgraded the risk rating of the bonds, and Hills decided to sell the investment on January 2, year 2, for $70 million. Prepare the journal entries required on the date of sale