Tanner-UNF Corporation acquired as an investment $300 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $250 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 $260 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. Prepare any additional journal entry necessary for Tanner-UNF to 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 $260 million. Prepare the journal entries required on the date of sale.
Journal Entry 4a
Prepare any journal entry needed to adjust the investment to fair value.
Journal Entry 4b
Record the sale of the investment by Tanner-UNF.

1. July 1, investment in UNF bonds

Dr Investment in bonds HTM 300,000,000

  Cr Cash 250,000,000

  Cr Discount on bonds 50,000,000

December 31, interest revenue from investment in bonds

Dr Cash 9,000,000

Dr Discount on bonds 1,000,000

  Cr Interest revenue 10.000,000

Discount on bonds = ($250,000,000 x 4% x 1/2) - ($300,000,000 x 3% x 1/2) = $1,000,000

2. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet.

Investment in bonds HTM = $300,000,000 (face value) - $49,000,000 (discount on bonds) = $251,000,000

Changes in the market value of bonds held to maturity are not considered by the company.

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 $310.0 million. Prepare the journal entry to record the sale.

Dr Cash 310,000,000

Dr Discount on bonds 49,000,000

   Cr Investment in bonds HTM 300,000,000

   Cr Gain on investment in bonds HTM 59,000,000

answer: heh

explanation:

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'