holding the bonds in its trading portfolio. The market interest rate (yield) was 10% for bonds of similar risk and maturity. Tanner-UNF paid $230 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 $240 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 $220 million. Prepare the journal entries required on the date of sale 51 Reg 1 and 2 Reg 3 Reg 4 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the inves 2, 2022, for $220 million. Prepare the journal entries required on the date of sale. (If no entry is required for a transa "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (l.e., 5 be entered as 5.5).) 32 View transaction list Journal entry worksheet 2 Record the entry to adjust the fair value. nces Note: Enter debits before credits Debit Credit Date General Journal January 02, 2022 Loss on investment (unrealized, NI) Fair value adjustment Record entry Clear entry View general Journal Req 1 and 2 Reg 3 Req 4 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the inve 2, 2022, for $220 million. Prepare the journal entries required on the date of sale. (If no entry is required for a trans "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (l.e., be entered as 5.5).) View transaction list Journal entry worksheet