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Problem 1 2 - 1 ( Algo ) Securities held - to - maturity; bond investment; effective interest; financial statement effects [ LO 1 2
Problem Algo Securities heldtomaturity; bond investment; effective interest; financial statement effects LO Fuzzy Monkey Technologles, Incorporated purchased as a longterm Investment $ million of bonds, dated January on January Management has the positive intent and ability to hold the bonds untll maturity. For bonds of similar risk and maturity the market yleld was The price pald for the bonds was $ million. Interest is recelved semiannually on June and December Due to changing market conditions, the falr 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. Complete this question by entering your answers in the tabs below. Req to Prepare the relevant journal entries on the respective dates record the interest at the effective rate Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to decimal places, ie should be entered as Show less Journal entry worksheet Record Fuzzy Monkey's investment on bonds on January Note: Enter debits before credits. tableDateGeneral Journal,Debit,CreditJanuary
Problem Algo Securities heldtomaturity; bond investment; effective interest; financial statement effects LO
Fuzzy Monkey Technologles, Incorporated purchased as a longterm Investment $ million of bonds, dated January on January Management has the positive intent and ability to hold the bonds untll maturity. For bonds of similar risk and maturity the market yleld was The price pald for the bonds was $ million. Interest is recelved semiannually on June and December Due to changing market conditions, the falr 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.
Complete this question by entering your answers in the tabs below.
Req to
Prepare the relevant journal entries on the respective dates record the interest at the effective rate
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to decimal places, ie should be entered as
Show less
Journal entry worksheet
Record Fuzzy Monkey's investment on bonds on January
Note: Enter debits before credits.
tableDateGeneral Journal,Debit,CreditJanuary
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