eStRevent 2001900 4.3 Alo Jornal Entrly (2uing E12-10 Static) Available-for-sale securities 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 available-for-sale investment. The market interest rate (yield) was 8% for bonds of similar risk anvd 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: 2021 Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1. 1 and interest on December 31, 2021, at the effective (market) rate. Derepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2021, balance sheet. 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 entnes necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale. Credit 1 & 2 Debit Accounts 240ml1on Jul 1, 21 240 mil/on Inerest Revenve 210 millon |210mil/on Dec. 31, 21 Invest mant on Bonds cash # 3 Dec. 31, 21 AnVestmont In honds eash Pag