Fuzzy Monkey Technologies, Incorporated purchased as a short$-$term investment $$220$ million of $8\%$ bonds, dated January $1,$ on January $1,2024.$ Management intends to include the investment in a short$-$term, active trading portfolio. For bonds of similar risk anc maturity the market yield was $10\%.$ The price paid for the bonds was $$201$ million. Interest is received semiannually on June $30$ and December $31.$ Due to changing market conditions, the fair value of the bonds at December $31,2024,$ was $$210$ million.

Required:

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 $31,2024$ balance sheet?

$4-$b$.$ Prepare any entry necessary to achieve this reporting objective.

How would Fuzzy Monkey's $2024$ statement of cash flows be affected by this investment? $($If more than one approach is possible, indicate the one that is most likely.$)$

Complete this question by entering your answers in the tabs below.

Req $1$ to $3$

Req $4$A

Req $4$B

Req $5$

Prepare the relevant journal entries on the respective dates $($record the interest at the effective rate$).$

Note: 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 $5\mathrm{.}50).$

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[1,$January $01,2024,$Investment in bonds,$220\mathrm{.}00,],[,,$Discount on bond investment,$19\mathrm{.}00,]]$