Question: What goes in the dashed boxes on the right and what are the journal entires for Record the interest expense 6/30/21 Record the interest expense

What goes in the dashed boxes on the right and what are the journal entires for

Record the interest expense 6/30/21

Record the interest expense 12/31/21

Record entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet. Federal determined that none of the change in fair value was due to a decline in general interest rates.

Record the interest expense 6/30/22

Record the interest expense 12/31/22

Record entry to adjust the bonds to their fair value for presentation in the December 31, 2022, balance sheet. Federal determined that one-half of the increase in fair value was due to a decline in general interest rates.

What goes in the dashed boxes on the right and what are

Federal Semiconductors issued 10\% bonds, dated January 1, with a face amount of $870 million on January 1 , 2021 . The bonds sold for $800,199,358 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 11%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $780 million as determined by their market value in the over-the-counter market. Assume the fair value of the bonds on December 31,2022 had risen to $786 million. Required: Complete the below table to record the following journal entries. 1. \& 2. Prepare the journal entries to adjust the bonds to their fair value for presentation in the December 31,2021 , balance sheet, and adjust the bonds to their fair value for presentation in the December 31, 2022, balance sheet. Federal determined that none of the change in fair value in 2021 was due to a decline in general interest rates and one-half of the increase in fair value in 2022 was due to a decline in general interest rates. Complete this question by entering your answers in the tabs below. Complete the below table to determine the amounts for the journal entries. (Negative amount should be indicated by a minus sign. Round final answers to the nearest whole dollars.)

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