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Fuzzy Monkey Technologies, Incorporated purchased as a long - term investment $ 8 0 million of 8 % bonds, dated January 1 , on January
Fuzzy Monkey Technologies, Incorporated purchased as a longterm investment $ million of bonds, dated January on January Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was The price paid for the bonds was $ million. Interest is received semiannually on June and December Due to changing market conditions, the fair value of the bonds at December was $ million.
Required:
to Prepare the relevant journal entries on the respective dates record the interest at the effective rate
At what amount will Fuzzy Monkey report its investment in the December balance sheet?
How would Fuzzy Monkey's statement of cash flows be affected by this investment? If more than one approach is possible, indicate the one that is most likely.
Answer is complete but not entirely correct.
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How would Fuzzy Monkey's statement of cash flows be affected by this investment? If more than one approach is possible, indicate the one that is most likely.
Note: Do not round intermediate calculations. Enter all amounts as positive values. Enter your answers in millions rounded to decimal place, ie should be entered as
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tableOperating cash flow,$million,inflow,
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