Problem $12-1($Algo$)$ Securities held$-$to$-$maturity; bond investment; effective interest; financial statement

effects $[$LO$12-1,12-2]$

Fuzzy Monkey Technologies, Incorporated purchased as a long$-$term investment $$120$ million of $6\%$ bonds, dated January $1,$ on January

$1,2024.$ 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 $$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:

to $3.$ 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 $31,2024$ balance sheet?

How would Fuzzy Monkey's $2024$ statement of cash flows be affected by this investment? $($ff more than one approach is possible,

indicate the one that is most likely.$)$

Answer is complete but not entirely correct.

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

Meq $1$ to $3$

At what amount will Fuzzy Monker report its investment in the December $31,2024$ balance sheet?

Notel: Do not round intermediate calculations. Enter your answer in millions rounded to $2$ decimal places $(4,4,5,500,000$

should be entered as $5\mathrm{.}50).$