Fuzzy Monkey Technologies, Inc , purchased as a long term investment $210 million of 6 bonds, dated January 1, on January 1, 2013 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 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, 2013, was $200 million Required 1 Prepare the journal entry to record Fuzzy Monkeys investment on January 1, 2013 (If no entry is required for a transaction, select No journal entry required in the first account field Enter your answers in millions (i e , 10,000,000 should be entered as 10)) 2 Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2013 (at the effective rate) (If no entry is required for a transaction , select No journal entry required in the first account field Enter your answers in millions rounded to 2 decimal places (i e , 5,520,000 should be entered as 5 52)) 3 Prepare the journal entries by Fuzzy Monkey to record interest on December 31, 2013 (at the effective rate) (If no entry is required for a transaction , select No journal entry required in the first account field Enter your answers in millions rounded to 2 decimal places (i e , 5,520,000 should be entered as 5 52)) 4 1 At what amount will Fuzzy Monkey report its investment in the December 31, 2013, balance sheet (Enter your answer in millions ) 4 2 Prepare an entry necessary to achieve the reporting objective (If no entry is required for a transaction , select No journal entry required in the first account field Enter your answers in millions rounded to 2 decimal places (i e , 5,520,000 should be entered as 5 52)) 5 How would Fuzzy Monkeys 2013 statement of cash flows be affected by this investment assuming Fuzzy prepares a direct method statement of cash flows ( Enter your answer in millions Round operating cash flow answer to 1 decimal place )

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Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $210 million of 6% bonds, dated January 1, on January 1, 2013. Management intends to have

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $210 million of 6% bonds, dated January 1, on January 1, 2013. 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 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, 2013, was $200 million.

Required:

1.	Prepare the journal entry to record Fuzzy Monkeys investment on January 1, 2013. (If no entry is required for a transaction, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10))

2.	Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2013 (at the effective rate). (If no entry is required for a transaction, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,520,000 should be entered as 5.52))

3.	Prepare the journal entries by Fuzzy Monkey to record interest on December 31, 2013 (at the effective rate). (If no entry is required for a transaction, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,520,000 should be entered as 5.52))

4.1	At what amount will Fuzzy Monkey report its investment in the December 31, 2013, balance sheet?(Enter your answer in millions.)

4.2	Prepare an entry necessary to achieve the reporting objective. (If no entry is required for a transaction, select "No journal entry required" in the first account field.Enter your answers in millions rounded to 2 decimal places (i.e., 5,520,000 should be entered as 5.52))

5.	How would Fuzzy Monkeys 2013 statement of cash flows be affected by this investment assuming Fuzzy prepares a direct method statement of cash flows? (Enter your answer in millions. Round operating cash flow answer to 1 decimal place.)