ainer bookmarks FedEx Tracking Campus Login Sow.htme/act 1 - Practice Knowledge Check (due day 51 4 Exercise 12-10 (Static) Available-for-sale securities [LO12-1, 12-4) Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated Julyt on July 1, 2021 Company management has classified the bonds as an available for sale investment. The market interest rate field) 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 milion. Prepare the journal entries necessary to record the sale, including updating the fair value adjustment, recording any reclassification adjustment, and recording the sale Punt ferences Complete this question by entering your answers in the tabs below. Red 1 and 2 Re Reg4 Prepare the journal entry to record Tanner-UNF'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, L., 5.500,000 should be entered as 5.5).) View transaction list Journal entry worksheet Record Tanner-UNFS Investment in the bonds only 1, 2021. Nistenter debts before credits e here to search