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Tanner-UNF Corporation acquired as a long-term Investment $260 million of 7.0% bonds, dated July 1 , on July 1 , 2021 . Company management has
Tanner-UNF Corporation acquired as a long-term Investment $260 million of 7.0% bonds, dated July 1 , on July 1 , 2021 . Company management has the positlve Intent and ability to hold the bonds until maturity. The market Interest rate (yleld) was 9% for bonds of similar risk and maturity. Tanner-UNF pald $220.0 million for the bonds. The company will recelve Interest semlannually on June 30 and December 31 . As a result of changing market conditions, the falr value of the bonds at December 31,2021 , was $240.0 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 effectlve (market) rate. 3. At what amount will Tanner-UNF report its Investment In the December 31,2021 , balance sheet? 4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motlvating Tanner-UNF to sell the Investment on January 2,2022 , for $220.0 million. Prepare the journal entry to record 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. (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).) Journal entry worksheet Record Tanner-UNF's investment in the bonds on July 1, 2021. Note: Enter debits before credits
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