2024
please help asap i will upvote
Tanner-UNF Corporation acquired as a Iong-term investment $300 million of 7% bonds, dated July 1, on July 1, 2024 . Company management has classified the bonds as an available-for-sale investment. The market interest rate (yield) was 8% for bonds of sim risk and maturity. Tanner-UNF paid $280 million for the bonds. The company will receive interest semlannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31 , 2024 , was $285 million. Required: 1. \& 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1,2024 and interest on December 31,20 at the effective (market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31,2024 , balance she 4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment January 2, 2025, for $260 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1,2024 and in (market) rate. Note: If no entry is required for a transaction/event, select "No journal entry required" in the firs calculations. Enter your answers in millions rounded to 1 decimal place, (1.e., 5,500,000 should Journal entry worksheet Record Tanner-UNF's investment in the bonds on July 1, 2024. Note: Enter debits before credits. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31 , 2024 , baian Note: If no entry is required for a transaction/event, select "No journal entry required" in the figst account field. Do not calculations. Enter your answers in millions rounded to 1 decimal place, (1.e., 5,500,000 should 1 oe entered as 5.5 ). Journal entry worksheet Prepare any additional journal entry needed for Tanner-UNF to report its investment in the December 31, 2024, balance sheet. Note: Enter debits before credits. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on lanivary 2, 2025, for $260 milion. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any rechassification adjustment, and recording the sale. Note: If no, entry is required for a transaction/event, select "No joumal entry required" in the frst account field. Do not round intermediase Calculations enter your answers in millions rounded to 1 decimal place, (1,6,5,500,000 should be entered as 5,5). Journal entry worksheet Record the entry for fair-value adjustment, AFS investment. Noter Fnter debits befare credits. Journal entry worksh Record the entry for reclassification adjustment. Vote: Enter debits before credits. Journal entry worksheet Record the sale of the investment by Tanner-UNF. Note: Enter debits before credits
