fuzzy monkey technologies inc purchased as a long term investment 210 million of 6% bonds dated january 1 on january 1 2021

Problem 12-1 (Algo) Securities held-to-maturity; bond investment; effective interest [LO12-1, 12-2] 5 S Book Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $210 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 $192 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 $200 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) Ask Print Complete this question by entering your answers in the tabs below. ferences Reg 1 to 3 Reg 4 Reqs How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? (If more than on possible, indicate the one that is most likely.) (Do not round intermediate calculations. Enter all amounts as Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) Operating cash flow Investing cash flow million million Tubers