Ch Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2021 Management intends to have the investment available for sale when circumstances warrant. When the company purchased the bonds management elected to account for them under the fair value option. 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-o. At what amount will Fuzzy Monkey report its investment in the December 31, 2021, balance sheet? 4-b. Prepare the journal entry necessary to achieve this reporting objective 5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment assuming Fuzzy anticipates holding these investments for a sufficiently long period? (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. Red 1 to 3 Reg 4 Reg 4 Regs Prepare the relevant journal entries on the respective dates (record the interest at the effective rato). (If no entry is required for 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. ( 15,500,000 should be entered as 5.50).) Prey 1 of 4 !!! Next > Req 1 to 3 Req 4A Req 48 Reg 5 Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). (If no transaction/event, select No journal entry required in the first account field. Do not round intermediate calo answers in millions rounded to 2 decimal places, (ie, 5,500,000 should be entered as 5.50).) View transaction list Journal entry worksheet 2 3 > Record Fuzzy Monkey's investment on bonds on January 1, 2021. Note: Enter debite before credits General Journal Date January 01, 2021 Debit Credit by this Investment assuming investments for a sufficiently long period? (If more than one approach is possible, indicate the one that Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg 4A Req 48 Reg 5 At schat amount VIII Fuzzy Monkey report its investment in the December 31, 2021, balance sheet? (Do notre Thtermediate calculations. Enter your answer to million ke.. 10,000,000 should be entered as 2017 Unvesttent millon Reg 1 to 3 Req 43 > Complete this question by entering your answers in the tabs below. Reg 1 to 3 Reg 4A Req 4B Reg 5 BOOK Prepare the journal entry necessary to achieve this reporting objective. (If no entry is required for a transact entry required in the first account field. Do not round intermediate calculations. Enter your answers in million places, G.e. 5.500,000 should be entered as 5.50).) Print Terencer View transaction list Journal entry worksheet Record any necessary entry to report the investment at the correct value on the balance sheet. Note Enter debits before credits Date General Journal Debit Credit December 31 2021 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? 4-5. Prepare the Journal entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment assuming Fuzzy anticipat Investments for a sufficiently long period? (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 Req 4A Req 48 Reg 5 How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment assuming Fuzzy anticipates holding these investments for a sufficiently long period? (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, (l. 5,500,000 should be entered as 5.5).) Show less milion Operating cash flow Investing cash flow million
