12 - Homework Help Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $120 million of 6% bonds, dated January 1, on January 1, 2021 Management has the positive Intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yleld was 8%. The price pald for the bonds was $100 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, 2021, was $110 million Required: 1. to 3. Prepare the relevant joumal entries on the respective dates (record the interest at the effective rate). 4. At what amount will Fuzzy Monkey report its Investment in the December 31, 2021 balance sheet? 5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this Investment? (If more than one approach is possible. indicate the one that is most likely.) Complete this question by entering your answers in the tabs below. Req 1 to 3 Reg 4 Reg 5 Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). (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, (l.e., 5,500,000 should be entered as 5.503.) View transaction list Journal entry worksheet 1 2 3 Record Fuzzy Monkey's investment on bonds on January 1, 2021. Notel Enter debits before credits View transaction list Journal entry workshe Record the Interest revenue on December 31, 2021. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general Journal Prev 10 of 18 Next -Homework Help Save AE Check Problem 12-1 (Algo) Securities heid-to-maturity; bond Investment; effective Interest (L012-1, 12-2] 25 Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $120 million of 6% bonds, dated January 1, on January 1, 2021 Management has the positive Intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $100 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, 2021, was $110 million. Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the Interest at the effective rate). 4. At what amount will Fuzzy Monkey report its investment in the December 31, 2021 balance sheet? 5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this Investment? (if more than one approach is possible, indicate the one that is most likely.) Complete this question by entering your answers in the tabs below. Reg 4 Reqs Reg 1 to 3 At what amount will Fuzzy Monkey report its investment in the December 31, 2021 balance sheet? (Do not round Intermediate calculations. Enter your answer in millions rounded to 2 decimal places, ie, 5,500,000 should be entered as 5.50)) cos million Investment Regs> Deg 1 to 3 Next > Problem 12-1 (Algo) Securities held-to-maturity; bond investment; effective interest (LO12-4, 12-23 Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $120 million of 6% bonds, dated January 1, on January 1, 2021. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $100 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, 2021, was $110 million Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). 4. At what amount will Fuzzy Monkey report its investment in the December 31, 2021 balance sheet? 5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? (f more than one approach is possible, indicate the one that is most likely.) Complete this question by entering your answers in the tabs below. Reg 5 Reg 1 to 3 Reg 4 How would Fuzzy Monkey's 2021 statement of cash flows be affected by this Investment? (If more than one approach is possible, indicate the one that is most likely.) (Do not round Intermediate calculations. Enter all amounts as positive values Enter your answers in millions rounded to 1 decimal place, (.e., 5,500,000 should be entered as 5.5).) million million Operating cash flow Investing cash flow