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Tanner-UNF Corporation acquired as a long-term Investment $225 million of 8% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds

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Tanner-UNF Corporation acquired as a long-term Investment $225 million of 8% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds as an available-for-sale investment. The market interest rate yield) was 10% 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, 2021, was $190 million. Required: 1. & 2. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its Investment in the December 31, 2021, 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, 2022, for $170 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg4 Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective market) rate. (If no entry is required for a transaction/event, select "No purnal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (le, 5,500,000 should be entered as 5.5)) View transaction line Journal entry worksheet Journal entry worksheet Record interest on December 31, 2021. Note: Enter debits before credits. General Journal Debit Date December 31, 2021 Credit Cash Record entry Clear entry View general Journal Raq 1 and 2 Ron2 View transaction list Journal entry worksheet 1 Record the entry for fair value adjustment. Note: Enter debits before credits. General Journal Debit Credit Date December 31 2021 Journal entry worksheet Record the entry for fair-value adjustment, AFS investment. Note: Enter debits before credits. General Journal Debit Credit Date January 02, 2022 Record the entry for reclassification adjustment. Note: Enter debits before credits. General Journal Debit Credit Date January 02, 2022 Journal entry works >

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