On January $1,2024,$ Rapid Airlines Issued $$255$ million of its $8\%$ bonds for $$235$ mililion.

The bonds were priced to yleld $10\%.$

Interest is payable semiannually on June $30$ and December $31.$

Rapid Airilnes records Interest at the effective rate and elected the option to report these bonds at their falr value.

On December $31,2024,$ the falr value of the bonds was $$244$ million as determined by their market value in the over$-$th

Rapid determined that $$1,000,000$ of the Increase in falr value was due to a decine in general interest rates.

Required:

to $3.$ Prepare the Journal entrles to record interest on June $30,2024($the first Interest payment$),$ on December $31,2024($the Interest payment$)$ and to adjust the bonds to their falr value for presentation in the December $31,2024,$ balance sheet.

Note: Enter your answers in whole dollars. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" first account field.

Journal entry worksheet

$1$

$2$

$3$

Record interest on June $30,2024($the first interest payment$).$

Note: Enter debits betore crecits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$June $30,2024,,,],[,,,],[,x+2,,\_],[,,,],[,x+2-10,-,],[,,,]]$