Tanner-UNF Corporation acquired as a long-term investment $300 million of 4% bonds, dated July 1, on July 1, 2013. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Tanner-UNF paid $270 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, 2013 was $280 million.
Required:
Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2013.