The bonds sold for $$680,994,058$ snd mature on December $31,2043(20$ years$).$

For bonds of aimilar riak snd maturity the morket yieid was $9\%$

Interest is poid semionnuslly on June $30$ snd Desember $31$

Federel determines interest st the effectlve rate.

Federd elected the option to report these bonds ot their fisir volue.

On December $31,2024,$ the foir vslue of the bonds was $$670$ million sa desermined by their morket velue in the over$-$the$-$sounter

morket.

Asaume the for value of the bonds on December $31,2025,$ hod rian to $$676$ million.

Requlred:

Complete the below tsble to record the following joumsl entries.

& $2$ Prepore the journsl entries to record interest on June $30,2024,$ December $31,2024,$ snd sdjust the bonds to thelr folr value for

presentetion in the December $31,2024$ bolance sheet, snd record interest on June $30,2025,$ December $31,2025,$ and soljust the

bonds to their folr value for presentation in the Desember $31,2025,$ bslsnce sheet. Federsl determined thet none of the change in fisir

generd intereat retes.