1)

2)

Fuzzy Monkey Technologies, Incorporated purchased as a short-term investment $80 million of 6% bonds, dated January 1 , on January 1, 2024. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $64 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31,2024 , was $70 million. Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). 4-a. At what amount will Fuzzy Monkey report its investment in the December 31, 2024 balance sheet? 4-b. Prepare any entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey's 2024 statement of cash flows be affected by this investment? (If more than one approach is possible, indicate the one that is most likely.) Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.50). Journal entry worksheet Record Fuzzy Monkey's investment on bonds on January 1, 2024. Note: Enter debits before credits. Record the interest revenue on June 30, 2024. Note: Enter debits before credits. Record the interest revenue on December 31, 2024. Note: Enter debits before credits. At what amount will Fuzzy Monkey report its investment in the December 31, 2024 balance sheet? Note: Do not round intermediate calculations. Enter your answer in millions (i.e., 10,000,000 should be entered as 10). Record any necessary entry to report the investment at the correct value on the balance sheet. Note: Enter debits before credits. How would Fuzzy Monkey's 2024 statement of cash flows be affected by this investment? (If more than one approach is possible, indicate the one that is most likely.) Note: Do not round intermediate calculations. Enter all amounts as positive values. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5). Fuzzy Monkey Technologies, Incorporated purchased as a long-term investment $130 million of 8% bonds, dated January 1 , on January 1, 2024. Management intends to have the investment available for sale when circumstances warrant. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $115 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2024, was \$120 million. Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). 4-a. At what amount will Fuzzy Monkey report its investment in the December 31, 2024, balance sheet? 4-b. Prepare the entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey's 2024 statement of cash flows be affected by this investment? (If more than one approach is possible, indicate the one that is most likely.) Record Fuzzy Monkey's investment on bonds on January 1, 2024. Note: Enter debits before credits. Record the interest revenue on June 30, 2024. Note: Enter debits before credits. Record the interest revenue on December 31, 2024. Note: Enter debits before credits. At what amount will Fuzzy Monkey report its investment in the December 31, 2024, balance sheet? Note: Do not round intermediate calculations. Enter your answer in millions (i.e., 10,000,000 should be entered as 10). Record any necessary entry to report the investment at the correct value on the balance sheet. Note: Enter debits before credits. How would Fuzzy Monkey's 2024 statement of cash flows be affected by this investment? (If more than one approach is possible, indicate the one that is most likely.) Note: Do not round intermediate calculations. Enter all amounts as positive values. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5)