Check my work Tanner-UNF Corporation acquired as a long-term investment $270 million of 8.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 10% for bonds of similar risk and maturity. Tanner-UNF paid $240.0 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, 2021, was $250,0 million Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective market) rate. 3. At what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet? 4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $230.0 million. Prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. es Req 1 and 2 Req3 Req 4 Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021 and interest on December 31, 2021, effective (market) rate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fle your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 1 2 Tanner-UNF Corporation acquired as an investment $250 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $200 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, 2021, was $210 million Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2021, balance sheet 4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $190 million. Prepare the journal entries required on the date of sale. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021 and interest on December 31, 2021, a effective (market) rate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fel your answers in millions rounded to 1 decimal place, (.e., 5,500,000 should be entered as 5.5).) View transaction list Tournal entry worksheet 2 Joints On February 18, 2021, Union Corporation purchased 2,400 IBM bonds as a long-term investment at their face value for a total of $2,400,000. Union will hold the bonds indefinitely, and may sell them if their price increases sufficiently. On December 31, 2021, and December 31, 2022, the market value of the bonds was $2,340,000 and $2,430,000, respectively. Required: 2. & 3. Prepare the adjusting entry for December 31, 2021 and 2022. (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) B eBook Hint Print View transaction list References Journal entry worksheet 1 2 [ Record the adjusting entry for December 31, 2021. Note: Enter debits before credits General Journal Debit Credit Date December 31, 2021 3 Ints Check my work Tanner-UNF Corporation acquired as a long-term investment $225 million of 8% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds as an available-for-sale investment. The market interest rate yield) was 10% for bonds of similar risk and maturity. Tanner-UNF paid $180 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, 2021, was $190 million. Required: 1. & 2. Prepare the journal entry to record Tanner-UNFs investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2021, balance sheet 4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $170 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale. Skipped eBook Print References Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req4 Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021 and interest on December 31, 2021, effective (market) rate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fe your answers in millions rounded to 1 decimal place, (l.e., 5,500,000 should be entered as 5,5).) View transaction list
