Tanner-UNF Corporation acquired as a long-term investment $260 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 $220.0 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 $230.0 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. At what amount will Tanner-UNF 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 $210.0 million. Prepare the journal entry to record the sale.

1. Dr Investment in bonds $260 million

Cr Discount on bond investment $40 million

Cr Cash $220 million

2. Dr Cash $7.8 million

Dr Discount on bond investment $2.1 million

Cr Interest revenue $9.9million

3. $222.1million

4. Dr Cash $210 million

Dr Discount on Bonds investment $37.9million

Dr Loss on sale of bonds $12.1 million

Cr Investment in bonds $260 million

Explanation:

1. & 2. Preparatiin of 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.

1. Dr Investment in bonds $260 million

Cr Discount on bond investment $40 million

Cr Cash $220 million

(Being to record the purchase of investment )

2. Dr Cash $7.8 million

[(6%*$260)* 6 ÷ 12]

Dr Discount on bond investment $2.1 million

($9.9million-$7.8 million)

Cr Interest revenue $9.9million

[(9%*$220)* 6 ÷ 12]

(Being to record interest on bonds )

3. Calculation for what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet

Bond investment $260 million

Less Discount on bond investment ($37.9million)

($40 million - $2.1 million)

Investment cost $222.1million

Therefore the amount that Tanner-UNF will report its investment in the December 31, 2021, balance sheet is $222.1million

4. Preparation of the journal entry to record the sale.

Dr Cash $210 million

Dr Discount on Bonds investment $37.9million

($40 million - $2.1 million)

Dr Loss on sale of bonds $12.1 million

[260 million-($210 million+$37.9million)]

Cr Investment in bonds $260 million

(Being to record sale of bonds )

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

answer; sensory adaptation;