Fuzzy Monkey Technologies, Incorporated purchased as a short$-$term investment $$120$ million of $6\%$ bonds, dated January $1,$ on January $1,2024.$ Management intends to include the investment in a short$-$term, active trading portfolio. For bonds of similar risk and maturity the market yield was $8\%.$ The price paid for the bonds was $$100$ 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 $$110$ 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 $31,2024$ balance sheet?

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

$5.$ 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.$)$