Question

Check my work Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds as an available-for-sale investment. The market interest rate iyield) was 10% for bonds of similar risk and maturity, Tanner-UNF paid $210 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 $220 million points eBook Required: $. Prepare any additional Journal entry necessary for Tanner-UNF to report its investment in the December 31, 2021, 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, (.e., 5,500,000 should be entered as 5.5).) View transaction list View journal entry worksheet Date General Journal Debit Credit December 31, 2021 Transaction Recorded No Transaction R1 and 2.

Answer 1

Answert Journal entry Toate particulars 2F Debit Gilien credit illay 2021 Investment in bonds ale or $250.0 July TO Discount on bonds investment $ 40.0 - To Cash - 210.0 necz, Cash Ale£$250 x 8%/] Ale or $10.0 Discount onbonds Investment Ale po 40.5 TO Interest Revenue $10.5 £$ 210 x 10%/23 Fair value adjustment, al or $9.5 [$ 220-6210 +0.5)) To unsealised holding gain $9.5 Dec-311