Tanner-UNF Corporation acquired as a long-term investment $235 million of 8% bonds, dated July 1, on July 1, 2024, Company management has classified the bonds as an avallable-for-sale investment. The market interest rate (yield) was 10% for bonds of simitar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannualiy on June 30 and December 31 . As a result of changing market conditions, the fair value of the bonds at December 31,2024 , was $215 million Required: 1. \& 2. Prepare the joumal entry to record Tanner-UNF's investment in the bonds on July 1, 2024 and interest on December 31 . 2024. at the effective (market) rate. 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2024, 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, 2025, for $180 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording ary reclassitication adjustment, and recording the sale. Complete this question by entering your answers in the tabs below. Prepare the Joumal entry to record Tanner-UNF's investment in the bonds on July 1, 2024 and interest on December 31,2024 , at the effective (market) rate. Note: if no entry is required for a transaction/event, select "No foumal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (1.e., 5,500,000 should be entered as 5.5). Show less a Pregare the fournat entry to record Tanner-UNFs investment in the bonds on July-1, 2024 and interest on December 31. 2024, at the effective (market) rate. Note: If no enthy is requithd for a tranatctionvevent, seled "No loumat entry required in the first aocount feld. Do not round elective (nstket) rate. Wote: If no entry is requiled for e transactionvevent, beiect "No-journal entry required" in the flas ocmicint hetd Do not foumd Journal entry worksheet Hecotd interest on becember 31,2024 kefe fitider fai ki boutore credate Prepare aty atastichal joumnat entry necessary for tanner-UNAF to report its investment in the 0ecember 31, 2024, baiance shest. Journal entry worksheet Preaare any dddibnal journai ontry needed for Tahnet-uNi fo report its investmem in the cocember 31,2024 , balance sheet. hats fouk gebits tafber geing. 2. 2025, tor 11 fio mition. Erepare the journa entries neceisary to recold the sabe, induding updating the fait-value adjustmient. rucenting any reclatufcation adtustment, and recording the sale Journal entry worksheet 3 Record the entiy for fair value adjustment, AFs investment. surte totar feteds lulio e evits Suppose Moodys bond reting egency downgraded the rtak tatirg of the Donds mothating tannec-bkf to ced the utvestmient on larieary recording athy reclassificatien adjustmeht, and recording the sale. intertodiate calcalatione. Enter your answers in millons rounded to 1 dechal olace. ( L.e. 5.500 .600 shablid be entered as 5.5 . Journal entry worksheet Alecord the entry for reciasulication asjutment Suppose Moody' bond rating bgency downgraded the isk rating of the bonds motivating Tanner-uwi to sol the inveitment on daruary 2, 2025, for 160 milion. Phopare the bournal entries necessary to fecord the sale, imdiating upidating the fair-vatue adustenent. recordmig any cectaksificacion adjustment, and recordths the sale. Journal entry worksheet 1 Fecorit the sain of the investment by fanhen une
