Problem $12-1($Algo$)$ Securities held$-$to$-$maturity; bond investment; effective interest; financial statement effects $[$LO$12-1,12-2]$

Fuzzy Monkey Technologles, Incorporated purchased as a long$-$term Investment $$250$ million of $8\%$ bonds, dated January $1,$ on January $1,2024.$ Management has the positive intent and ability to hold the bonds untll maturity. For bonds of similar risk and maturity the market yleld was $10\%.$ The price pald for the bonds was $$228$ million. Interest is recelved semiannually on June $30$ and December $31.$ Due to changing market conditions, the falr value of the bonds at December $31,2024,$ was $$240$ 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? $($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 $3$

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 $5\mathrm{.}50).$

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Journal entry worksheet

$1$

$2$

$3$

Record Fuzzy Monkey's investment on bonds on January $1,2024.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $01,2024,,,],[,,,],[,,,],[,,,],[,,,]]$