Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1 , on July 1. 2021. Company management has classified the bonds as an avallable-for-sale investment. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $200 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 $210 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 $190 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. 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. Gif no entry is required for a transaction/event. select "No journal antry required in the first account field. Enter. your answers in milions rounded to 1 decimal place., (. . .. 5.500.000 should be entered as 5.5) ). Journal entry worksheet Fecord Tanner-UNF's investment in the bonds on July 1,2021. Nove: Enter debita before credits: Prepare any additional joumal entry necessary for Tanner-UNF to report its investment in the December 31,2021 , balance sheet. (If no entry is cegulred for a transaction/event, select "No journal entry required" in the first account fiald. Enter your answern in millions rounded to 1 decimal place, (1.e., 5,500,000 should be entered as 5.5).) Journal entry worksheet Twote: Fnter debits before cradits; 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 $190 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording 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)3) Show lessi Journal entry worksheet Record the entry for fair-value adjustment, AFS investment. Notei Enter debits before credits. Suppose Moodys bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2. 2022, for $190 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale. (If no entry is required for a tranisaction/event, select "No journal entry required in the first account field. Enter your answers in millions rounded to 1 decimal place, fi.e.. 5,500,000 should be entered as 5.5).) Show lessa Journal entry worksheet Record the entry for reclassification adjustment. Note: Enter dobits before credits. 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 $190 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale. (If no entry is required for a transaction/event, select "No fournal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place. (1.e.5,500,000 should be entered as 5.5).) Show less A Journal entry worksheet Record the sale of the investment by Tanner-UNF. Note: Enter debiss before credits
