Tanner-UNF Corporation acquired as a long-term investment $310 million of 6.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 9% for bonds of similar risk and maturity. Tanner-UNF paid $280.0 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, 2021, was $290.0 million.

4. Suppose Moodys bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $270.0 million. Prepare the journal entry to record the sale.

Journal entry worksheet 1 2 > Prepare any journal entry needed to adjust the investment to fair value. Note: Enter debits before credits. Debit Credit Date General Journal January 02, 2022 No journal entry required Record entry Clear entry View general journal Journal entry worksheet Record the sale. Note: Enter debits before credits. Credit Debit 270.0 Date General Journal January 02, 2022 Cash Loss on investments (NI) Discount on bond investment Investment in bonds 13.3 26.7 310.0 Record entry Clear entry View general journal X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 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 $270.0 million. Prepare the journal entry to record 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).) Show less No Date General Journal Debit Credit 1 January 02, 2022 No journal entry required 2 270.0 13.3 January 02, 2022 Cash Loss on investments (NI) Discount on bond investment Investment in bonds 26.7 310.0