Question: Use this information to answer Questions #4 & 5 & 6 On Jan 1, 2022Tanner -UNF Corporation acquired as a long term investment $300 million

Use this information to answer Questions #4 & 5 & 6

On Jan 1, 2022Tanner -UNF Corporation acquired as a long term investment $300 million of 5% bonds, dated Jan 1. Tanner's intent is to hold the bonds until maturity. The market interest rate for bonds of similar risk and maturity was 6%. Tanner paid $280 million for the bonds. The company will receive interest semi-annually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds on June 30, 2022 was $290,000.

Question #1

Prepare the journal entry to record Tanner's investment in the bonds on Jan. 1 2022.

Question #2

Prepare the journal entry that Tanner should enter to record the interest on June 30, 2022 at the effective (market) rate.

Question #3

If an unexpected change in Tanner's operations forced them to sell the bonds for $270 million on July 1, 2022, prepare the journal entry to record the sale.

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