Tanner-UNF Corporation acquired as a long-term investment $220 million of 4% bonds, dated July 1, on July 1, 2013. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Tanner-UNF paid $180 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, 2013 was $190 million. Required:

1. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2013. (If no entry is required for an event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).)

2.

Prepare the journal entry by Tanner-UNF to record interest on December 31, 2013, at the effective (market) rate. (If no entry is required for an 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).)