Return to question Exercise 12-5 (Algo) Trading securities [LO12-1, 12-3] Tanner-UNF Corporation acquired as an investment $240 million of 7% bonds, dated July 1, on July 1, 2024 Company management is holding the bonds in its trading portfolio. The market Interest rate (yield) was 9% for bonds of similar risk and maturity. Tanner-UNF pald $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, 2024, was $210 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, 2024 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 sheet 4. Suppose Moody's bond rating agency downgraded the nsk rating of the bonds motivating Tanner-UNF to sell the Investment on January 2, 2025, for $190 million. Prepare the journal entries required on the date of sale Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2024 and interest on December 31, 2024, at the effective (market) rate. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (i.e. 5,500,000 should be entered as 5.5). No 1 Date July 01, 2024 General Journal Investment in bonds Cash Show less Debit Credit 240.0 200.0