Tanner-UNF Corporation acquired as a long-term investment $300 million of 10% bonds, dated July 1, on...

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Solution 1&2:

Journal Entries - Tanner - UNF Corporation
Event	Date	Particulars	Debit (In Million)	Credit (In Million)
1	1-Jul-18	Investment in Bond Dr	$300.00
		Premium on bond investment Dr	$64.00
		To Cash		$364.00
		(Being investment in bond recorded)

2	31-Dec-18	Cash Dr ($300 * 10% * 6/12)	$15.00
		To Interest revenue ($3647%6/12)		$12.74
		To Premium on bond investment		$2.26
		(Being revenue recognition for bond interest and premium amortized)

Solution 3:

Tanner-UNF report its investment in the December 31, 2018, balance sheet at = $364 - $2.26 = $361.74 million

Solution 4:

Journal Entries - Tanner UNF Corportation
Event	Date	Particulars	Debit (In Million)	Credit (In Million)
1	2-Jan-19	Cash Dr	$360.00
		Loss on sale of investment Dr	$1.74
		To Investment in Bond		$300.00
		To Premium on bond investment		$61.74
		(To record sale of investment)

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