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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, 2018 Management has the positive
Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $210 million of 6% bonds, dated January 1, on January 1, 2018 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, 2018, 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, 2018, balance sheet? 5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Req 5 Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). (If no entry is required for a 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, (i.e., 5,500,000 should be entered as 5.50).) Debit Credit No Date General Journal 210.000 January 01, 2018 Investment in bonds 92.00 18.00 Cash Discount on bond investment 6.30 June 30, 2018Cash 1.38 Discount on bond investment 7.68 Interest revenue 6.30 December 31, 201 Cash 1.44 Discount on bond investment 7.74 C Interest revenue Req 1 to 3 Req 4 Req 5 At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.50).) Investment 195.07 million Req 1 to 3 Req 4 Req 5 How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) Operating cash 2.6million inflow outflow Investing cash flow 192.0million
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