Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $80 million of 8% bonds, dated January 1, on January 1, 2021. Management intends to include the investment in a short-term active trading portfolio. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 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 $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, 2021 balance sheet? 4-6. Prepare any entry necessary to achieve this reporting objective. 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 1 to 3 Reg 4 Reg 43 Regs 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, (I.e., 5.500,000 should be entered as 5.50).) Req 1 to 3 Req 4A Reg 4B Reg 5 Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). (If no entry is require transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter answers in millions rounded to 2 decimal places, ().e., 5,500,000 should be entered as 5.50).) 25:32 View transaction list Sk Journal entry worksheet at Record the interest revenue on June 30, 2021. Note: Enter debits before credits Date June 30, 2021 General Journal Debit Credit Journal entry worksheet 2 3 > Record the interest revenue on December 31, 2021. Note: Enter debits before credits. General Journal Debit Date December 31 2021 Credit Record entry Clear entry View general Journal ering your answers in the tabs below. Reg 1 to 3 Req 4A Req 48 Reg 5 At what amount will Fuzzy Monkey report its investment in the December 31, 2021 balance sheet? (Enter your a millions (l.e. 10,000,000 should be entered as 10.). ***** Investment million ( Req 1 to 3 Req 4B) View transaction list 2 Journal entry worksheet > Record any necessary entry to report the investment at the correct value on the balance sheet. Note: Enter debits before credits General Journal Date December 31 2021 Debit Credit Record entry Clear entry View general journal 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, 2021 balance sheet? 4-b. Prepare any entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? (If more than one indicate the one that is most likely.) Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4A Req 4B Reg 5 How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? (If more than one approac possible, indicate the one that is most likely.) (Do not round intermediate calculations. Enter all amounts as positive Enter your answers in millions rounded to i decimal place, (i.e., 5,500,000 should be entered as 5.5).) Operating cash flow Investing cash flow million outflow million no effect
