8 Problem 12-2 Trading securities; bond investment, effective interest [L012-1, 12.3 10 Management intends to include the investment in a short torm. ective treding ponfolo For bends of sinila tisk and maturity the market yield was 8% The price peld for the bords was $100 milion. Interest b received semian ually on June 30 "nd December 31 Due to changing market condtions the fair value of the bonds an December 31, 2018, was $110 milion Required: 1. 10 3. Prepere the rolevant journal entries on the respective dates (record the interest at the eHective 4-s. At what amount will Fuzzy Monkey report its investment in the Derember 31. 2018, balgnce sheet 4-b. Prepare any ontry necessary to achieve this reporting objectve 5. How would Fuzzy Monkey's 2018 steroment of cash fows be affected by this invecatmem? Complete this question by entering your answers in the tabs below. Prepare the relevane journal entries on the rnspective dates (record the interest a for a tranaaction/event the effectivo rate). (If no entry is required No journal entry required" in the fhrst accoune aneners in millions rounded to 2 decimal places, (le. 5,500,000 should be entered as 5.50) n bonde Decount on bane n Jun 30, 2018 Cas Cash Dacount on bond investmen oog 44 )