Chapter 12 Saved Help Save & Exit S Check my w Tanner-UNF Corporation acquired as a long-term investment $260 million of 5% bonds , dated July 1, on July 1, 2018. The market interest rate (yield) was 7 % for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will recelve interest semiannually on June 30 and December 31. Company management has classified the bonds as available-for-sale investments. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $215 million. 10 points 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. Prepare any additional journal entry necessary for Tanner-UNF to 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 $190 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale Siipped eBook Print Complete this question by entering your answers in the tabs below. References Req 1 and 2 Req 3 Req 4 Req 1 and 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. (If no entry is required for a transaction/event, select 1No journal entry required" in the first account field. Enter your answers in millions rounded to decimal place, (i.e., 5,500,000 should be entered as S.5)) View transaction list Journal entry worksheet 2 Record Tanner-UNF's investment in the bonds on July 1, 2018. 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. Prepare any additional journal entry necessary for Tanner-UNF to 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 $190 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale. 10 point Skipped Complete this question by entering your answers in the tabs below. eBook Req 1 and 2 Req 3 Req 4 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. (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).) Print References View transaction list Journal entry worksheet 3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance shee 4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment c January 2, 2019, for $190 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjus recording any reclassification adjustment, and recording the sale. 10 points Skipped Complete this question by entering your answers in the tabs below. eBook Req 1 and 2 Rep Req 4 3 Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet. (If n 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).) Print References View transaction list Journal entry worksheet 1 Record the entry for fair value adjustment. Note: Enter debits before credits. Event General Journal Debit Credit 1 Mc Graw Hill Prev 6 of 13 Next> Juppuse UNuy a uuiu 1auiy ayeiy uuwigiaueu uie 113n 1au Iy ui uie UUIIUS vuvauiy a e-I LW aen ure IveaunenL VIE January 2, 2019, for $190 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustme recording any reclassification adjustment, and recording the sale. Complete this question by entering your answers in the tabs below. 10 points Sklpped Req 1 and 2 Req 3 Req 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 $190 million. Prepare the journal entries necessary to record the sale, including updating the fair-value adjustment, recording any reclassification adjustment, and recording 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).) eBook Show less A Print View transaction list References Journal entry worksheet