IXeN

Z $110$ L

$$e$$d

HION $$

$\backslash$table$[[,$Aq$,,$$ Ezoz po pue aug Kq sfupues pourney$],[,$A$9,,]]$

'KzOz jo pua aya Aq s$6$upues paunezau

$$nbay

I paunber!

$9$Z$0$Z uf Kqua $6$ug$>$anos ayn aredard panssi ajam spuauajers jepueus

fsomm wwosut

"EzOz jo pua $$a f$$q solupues

paupnbay

$3$Xd fq pasn sinomepardep

Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January $2,2025$ for $$330$ million. Prepare the journal entries required on the date of sale.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Show less $A$

Journal entry worksheet

$1$

$2$

Prepare any journal entry needed to adjust the investment to fair value.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $02,2025,,,],[,,,],[,,,],[,,,]]$

Prev

$4$ of $5$

Next

Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December $31,2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Journal entry worksheet

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2024,,,],[,,,],[,,,],[,,,]]$

Prev

$4$ of $5$

Next

Mills Corporation acquired as an investment $$260$ million of $7\%$ bonds, dated July $1,$ on July $1,2024.$ Company management is holdir the bonds in its trading portfolio. The market interest rate $($yield$)$ was $5\%$ for bonds of similar risk and maturity. Mills paid $$320$ 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 $31,2024,$ was $$300$ million.

Required:

IXeN

Z $110$ L

$$e$$d

HION $$

$\backslash$table$[[,$Aq$,,$$ Ezoz po pue aug Kq sfupues pourney$],[,$A$9,,]]$

'KzOz jo pua aya Aq s$6$upues paunezau

$$nbay

I paunber!

$9$Z$0$Z uf Kqua $6$ug$>$anos ayn aredard panssi ajam spuauajers jepueus

fsomm wwosut

"EzOz jo pua $$a f$$q solupues

paupnbay

$3$Xd fq pasn sinomepardep

Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January $2,2025$ for $$330$ million. Prepare the journal entries required on the date of sale.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Show less $A$

Journal entry worksheet

$1$

$2$

Prepare any journal entry needed to adjust the investment to fair value.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $02,2025,,,],[,,,],[,,,],[,,,]]$

Prev

$4$ of $5$

Next

Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December $31,2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Journal entry worksheet

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2024,,,],[,,,],[,,,],[,,,]]$

Prev

$4$ of $5$

Next

Mills Corporation acquired as an investment $$260$ million of $7\%$ bonds, dated July $1,$ on July $1,2024.$ Company management is holdir the bonds in its trading portfolio. The market interest rate $($yield$)$ was $5\%$ for bonds of similar risk and maturity. Mills paid $$320$ 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 $31,2024,$ was $$300$ million.

Required:

IXeN

Z $110$ L

$$e$$d

HION $$

$\backslash$table$[[,$Aq$,,$$ Ezoz po pue aug Kq sfupues pourney$],[,$A$9,,]]$

'KzOz jo pua aya Aq s$6$upues paunezau

$$nbay

I paunber!

$9$Z$0$Z uf Kqua $6$ug$>$anos ayn aredard panssi ajam spuauajers jepueus

fsomm wwosut

"EzOz jo pua $$a f$$q solupues

paupnbay

$3$Xd fq pasn sinomepardep

Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January $2,2025$ for $$330$ million. Prepare the journal entries required on the date of sale.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Show less $A$

Journal entry worksheet

$1$

$2$

Prepare any journal entry needed to adjust the investment to fair value.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $02,2025,,,],[,,,],[,,,],[,,,]]$

Prev

$4$ of $5$

Next

Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December $31,2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Journal entry worksheet

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2024,,,],[,,,],[,,,],[,,,]]$

Prev

$4$ of $5$

Next

Mills Corporation acquired as an investment $$260$ million of $7\%$ bonds, dated July $1,$ on July $1,2024.$ Company management is holdir the bonds in its trading portfolio. The market interest rate $($yield$)$ was $5\%$ for bonds of similar risk and maturity. Mills paid $$320$ 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 $31,2024,$ was $$300$ million.

Required:

IXeN

Z $110$ L

$$e$$d

HION $$

$\backslash$table$[[,$Aq$,,$$ Ezoz po pue aug Kq sfupues pourney$],[,$A$9,,]]$

'KzOz jo pua aya Aq s$6$upues paunezau

$$nbay

I paunber!

$9$Z$0$Z uf Kqua $6$ug$>$anos ayn aredard panssi ajam spuauajers jepueus

fsomm wwosut

"EzOz jo pua $$a f$$q solupues

paupnbay

$3$Xd fq pasn sinomepardep

Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January $2,2025$ for $$330$ million. Prepare the journal entries required on the date of sale.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Show less $A$

Journal entry worksheet

$1$

$2$

Prepare any journal entry needed to adjust the investment to fair value.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $02,2025,,,],[,,,],[,,,],[,,,]]$

Prev

$4$ of $5$

Next

Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December $31,2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Journal entry worksheet

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2024,,,],[,,,],[,,,],[,,,]]$

Prev

$4$ of $5$

Next

Mills Corporation acquired as an investment $$260$ million of $7\%$ bonds, dated July $1,$ on July $1,2024.$ Company management is holdir the bonds in its trading portfolio. The market interest rate $($yield$)$ was $5\%$ for bonds of similar risk and maturity. Mills paid $$320$ 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 $31,2024,$ was $$300$ million.

Required: