Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $ 130 million of 8% bonds, dated January 1, on January 1, 2016. Management intends to have the investment available for sale when circumstances warrant. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $115 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, 2016, was $120 million.

Required: Can you please tell me why my answers are INCOMPLETE / INCORRECT. Thank you.

1. Record Fuzzy Monkeys investment on bonds on January 1, 2016.

2. Record the interest revenue on June 30, 2016.

3. Record the interest revenue on December 31, 2016.

4. How would Fuzzy Monkey's 2016 statement of cash flows be affected by this investment?

Answer is not complete Date General Journal January 01, 2016 Investment in bonds Discount on bond investment Cash Cash June 30, 2016 Discount on bond investment Interest Revenue December 31, 2016 Cash Discount on bond investment Interest Revenue Debit 130.00 5.20 5.20 Credit 15.00 115.00 0.55X 5.75V 0.58X 5.77