Tanner-UNF Corporation acquired as a long term investment $250 million of 8% bonds, dated July 1, on July 1, 2018, The market interest rate yield was 10% for bonds of similar risk and maturity. Tanner UNF paid $210 million for the bonds. The company will recelve 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 $220 million 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 Decermber 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 eBook Het Print References January 2, 2019, for $200 million. Prepare the journal entries to record the sale 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, 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 rrillions rounded to 1 decimal place, (ie., 5,500,000 should be entered as 5.5).) Discount on bond investment 40.0 2100 red as a long-term investment $250 million of 8% bonds, dated July t on July 1, 2018, The market was 10% for bonds of similar risk and maturity Tanner-UNF paid $210 million for the bonds. The company will interest rate tylein recelve Interest semiannually on June 30 and December 31. Company management is holding the bonds in its trading portfollo. As a result of chenging market conditions, the tair value of the bonds at December 31, 2018, was $220 million Required: 1. &2. Prepare the yournal entry to record Tanner-UNF's Investment in the bonds on July 1, 2018 and interest on December 31, 2018, at ttve effective (marke) 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 $200 miltion Prepare the journal entries to record the sale. 0 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 R 3 Req 4 Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet. (lf no entry is required for a transaction/event, select "No yournal entry required" in the first account field. Enter your answers in miltions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5)) Debit Credit 1.00 Req 1 and 2 Req4 > Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on July 1, 2018 The market interest rate (yield) was 10% for bonds of similar risk and maturity Tanner-UNF paid $210 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 velue of the bonds at December 31. 2018, was $220 million. 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 $200 million. Prepare the journal entries to record the sale. 3 Answer is not complete. Complete this question by entering your answers in the tabs below Req 1 and 2 Req 3 Req 4 Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investmert on January 2, 2019, for $200 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).) Show lesS Tanner-UNF Corporation acquired as a long term investment $250 million of 8% bonds, dated July 1, on July 1, 2018, The market interest rate yield was 10% for bonds of similar risk and maturity. Tanner UNF paid $210 million for the bonds. The company will recelve 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 $220 million 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 Decermber 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 eBook Het Print References January 2, 2019, for $200 million. Prepare the journal entries to record the sale 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, 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 rrillions rounded to 1 decimal place, (ie., 5,500,000 should be entered as 5.5).) Discount on bond investment 40.0 2100 red as a long-term investment $250 million of 8% bonds, dated July t on July 1, 2018, The market was 10% for bonds of similar risk and maturity Tanner-UNF paid $210 million for the bonds. The company will interest rate tylein recelve Interest semiannually on June 30 and December 31. Company management is holding the bonds in its trading portfollo. As a result of chenging market conditions, the tair value of the bonds at December 31, 2018, was $220 million Required: 1. &2. Prepare the yournal entry to record Tanner-UNF's Investment in the bonds on July 1, 2018 and interest on December 31, 2018, at ttve effective (marke) 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 $200 miltion Prepare the journal entries to record the sale. 0 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 R 3 Req 4 Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet. (lf no entry is required for a transaction/event, select "No yournal entry required" in the first account field. Enter your answers in miltions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5)) Debit Credit 1.00 Req 1 and 2 Req4 > Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on July 1, 2018 The market interest rate (yield) was 10% for bonds of similar risk and maturity Tanner-UNF paid $210 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 velue of the bonds at December 31. 2018, was $220 million. 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 $200 million. Prepare the journal entries to record the sale. 3 Answer is not complete. Complete this question by entering your answers in the tabs below Req 1 and 2 Req 3 Req 4 Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investmert on January 2, 2019, for $200 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).) Show lesS
