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Tanner - UNF Corporation acquired as an investment $ 2 4 0 million of 6 % bonds, dated July 1 , on July 1 ,
TannerUNF Corporation acquired as an investment $ million of bonds, dated July on July Company management is holding the bonds in its trading portfolio. The market interest rate yield was for bonds of similar risk and maturity. TannerUNF paid $ million for the bonds. The company will receive interest semiannually on June and December As a result of changing market conditions, the fair value of the bonds at December was $ million.
Required:
& Prepare the journal entry to record TannerUNF's investment in the bonds on July and interest on December at the effective market rate.
Prepare any additional journal entry necessary for TannerUNF to report its investment in the December balance sheet.
Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating TannerUNF to sell the investment on January for $ million. Prepare the journal entries required on the date of sale.
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Prepare the journal entry to record TannerUNF's investment in the bonds on July and interest on December at the effective market rate.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to decimal place, ie should be entered as
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