Saved Help Save & Exit Sub Chapter 12 Check my wor 5 Tanner-UNF Corporation acquired as a long-term investment $300 million of 7 % bonds, dated July 1, on July 1, 2018. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $280 million for the bonds. The company will receive interest semiannually on June 30 and December 31. Company management is holding the bonds in its trading portfolio. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $285 million. 10 points Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, 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, 2019, for $260 million. Prepare the journal entries to record the sale. Skipped eBook Complete this question by entering your answers in the tabs below. Hint Req 1 and 2 Req 3 Reg 4 Print Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate. (If no entry is required for a transaction/event, select "No joumal entry required in the first account field. Enter your answers in millions rounded to 1 decimal place, (G.e., 5,500,000 should be entered as 5.5)) References View transaction list Journal entry worksheet 1 2 Record Tanner-UNF's investment in the bonds on July 1, 2018. Mc Prev 5 of 13 Next > UIung te DuiluS III ItS udaing porttollo. As a 10 result of changing market conditions, the fair value of the bonds at December 31, 2018, was $285 million. points Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, 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, 2019, for $260 million. Prepare the journal entries to record the sale. Skipped eBook Complete this question by entering your answers in the tabs below. Hint Req 1 and 2 Req 3 Req 4 Print Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5)-) References View transaction list Journal entry worksheet K 1 2 Record Tanner-UNF's investment in the bonds on July 1, 2018. Mc Graw Hill Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, 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, 2019, for $260 million. Prepare the journal entries to record the sale. 10 points Skipped Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 eBook Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (i.e. 5,500,000 should be entered as 5.5).) Hint View transaction list Print Journal entry worksheet References K 1 2 Record interest on December 31, 2018. Note: Enter debits before credits. Event General Journal Debit Credit Chec 5 Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds the effective (market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, 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, 2019, for $260 million. Prepare the journal entries to record the sale. on July 1, 2018 and interest on December 31, 2018, at 10 points Skipped Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 eBook Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (1.e., 5,500,000 should be entered as 5.5).) Hint View transaction list Print Journal entry worksheet References Record any adjustment necessary to report the bond investment in the December 31, 2018 balance sheet. Note: Enter debits before credits Event General Journal Debit Credit 1 Chapter 12 Saved Help Save & Exit Sub Check my won 5 the ettective (market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, 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, 2019, for $260 million. Prepare the journal entries to record the sale. 10 points Complete this question by entering your answers in the tabs below. Skipped Req 1 and 2 Req 3 Req 4 Suppose Moody's bond rating agenty downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $260 million. Prepare the journal entries to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (I.e., 5,500,000 should be entered as 5.5).) eBook Hint Show less & View transaction list Print Journal entry worksheet References Record the Updating the fair-value adjustment. Note: Enter debits before credits Event General Journal Debit Credit Grw 5 the ettective (market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, 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, 2019, for $260 million. Prepare the journal entries to record the sale. 10 points Complete this question by entering your answers in the tabs below. Skipped 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 investment on January 2, 2019, for $260 million. Prepare the journal entries to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (l.e., 5,500,000 should be entered as 5.5).) eBook Hint Show less A View transaction list Print Journal entry worksheet References 1 Record the sale of the investment by Tanner-UNF Note: Enter debits before credits. Event General Journal Debit Credit 2 Mc Graw