Fuzzy Monkey Technologies, Inc, purchased as a short-term investment $230 million of 10% bonds, dated January 1, on January 1 2018. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 12%. The price paid for the bonds was $210 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 $220 million 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, 2018, balance sheet? 4-b. Prepare any entry necessary to achieve this reporting objective 5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment? Y Complete this question by entering your answers in the tabs below. inces Reg 1 to 3 Reg 4A Reg 48 Regs 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 held. Do not round Intermediate calculations. Enter your antwers in millions rounded to 2 decimal places, re., 5,500,000 should be entered as 5.50)) View transaction list Journal entry worksheet 1 Record Fuzzy Monkey's investment on bonds on January 1, 2018 Fuzzy Monkey Technologies, Inc. purchased as a short-term investment $230 million of 10% bonds, dated January 1, on January 1 2018. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 12%. The price paid for the bonds was $210 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 $220 million 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, 2018, balance sheet? 4-6. Prepare any entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkeys 2018 statement of cash flows be affected by this investment? Complete this question by entering your answers in the tabs below. Reg 1 to 3 Req 4A Reg 4B Reg 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, (.e., 5,500,000 should be entered as 5.50). View transaction list Journal entry worksheet
