Tanner-UNF Corporation acquired as a long-term investment $250 million of 50% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate field) was 7% for bonds of similar risk and maturity. Tanner-UNF paid $210.0 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, 2018, was $220.0 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. At what amount will Tanner-UNF 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 $200.0 million. Prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 Prepare the journal entry to record Tanner-UNF's Investment in the bonds on July 1, 2018 and interest on December 31, 2018, att effective market) rate. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. your answers in millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.50).) View transaction list Journal entry worksheet Record Tanner-UNF's investment in the bonds on July 1, 2018 Check my work Tanner-UNF Corporation acquired as a long-term investment $250 million of 5.0% bonds, dated July 1, on July 1, 2018 Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 7% for bonds of similar risk and maturity. Tanner-UNF paid $210.0 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, 2018, was $220.0 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. At what amount will Tanner-UNF 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 $200.0 million. Prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Reg 4 At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet? (Enter your answer in millions rounded to 2 decimal places, (1.e., 5,500,000 should be entered as 5.50).) Investment million Reg 1 and 2 Reg 4 > Check my w Req 1 and 2 Req3 Reg 4 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on 2, 2019, for $200.0 million. Prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (.e., 5,500,000 she entered as 5.50).) View transaction list Journal entry worksheet ATSUMUR LATURISHI S CREAT TO BE A FLORIDA GASO N
