Exercise 12-10 (Algo) Available-for-sale securities [LO12-1, 12-4) Tanner-UNF Corporation acquired as a long-term investment $260 million of 7% 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 9% for bonds of similar risk and maturity. Tanner-UNF paid $220 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 $230 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 $200 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment recording any reclassification adjustment, and recording the sale. Complete this question by entering your answers in the tabs below. Journal entry worksheet 1 2 Record Tanner-UNF's investment in the bonds on July 1, 2021. Note: Enter debits before credits. Date General Journal Debit Credit July 01, 2021 Record entry Clear entry View general journal Req 1 and 2 Reg 3 Reg 4 Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2021, bala entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer rounded to 1 decimal place, (l.e., 5,500,000 should be entered as 5.5).) View transaction list 30.15 Journal entry worksheet Record the entry for fair value adjustment. Note: Enter debits before credits General Journal Debit Credit Date December 31 2021 1 Req 1 and 2 Req3 Reg 4 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the invest 2, 2022, for $200 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adj recording any reclassification adjustment, and recording the sale. (If no entry is required for a transaction/event, select required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be 5.5).) View transaction list DO Journal entry worksheet