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Problem 12-1 (Algo) Securities held-to-maturity; bond investment; effective interest [LO12-1, 12-2] Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $240 million of 6% bonds,

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Problem 12-1 (Algo) Securities held-to-maturity; bond investment; effective interest [LO12-1, 12-2] Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $240 million of 6% bonds, dated January 1, on January 1, 2021. 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 $219 millon. Interest is recelved semlannually on June 30 and December 31 . Due to changing market conditions, the fair value of the bonds at December 31,2021 , was $230 million. Required: 1. to 3. Prepare the relevant joutnal entries on the respective dates (record the interest at the effective rate). 4. At what amount will Fuzzy Monkey report its investment in the December 31,2021 balance sheet? 5. How would Fuzzy Monkey's 2021 statement of cosh flows be affected by this investment? (f more than one approach is possible. indicate the one that is most likelyd Complete this question by entering your answers in the tabs below. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). (if no entry is required for a Prepare the relevant journat entries on the respective dates (recond the finteres of not round intermediate calculations, Enter your transwers in millions rounded to 2 decimal placis, (1.e., 5,500,000 should be entered as 5.50).) Journal entry worksheet Record Fuzzy Monkey's investment on bonds on January 1, 2021. Note: Enter debits before credits. Journal entry worksheet Record the interest revenue on June 30,2021. Note: Enter debits before credits. Journal entry worksheet Record the interest revenue on December 31,2021. Note: Enter debits before credits. Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). 4. At what amount will Fuzzy Monkey report its investment in the December 31,2021 balance sheet? 5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? (If more than one approach is possible: indicate the one that is most tikely.) Complete this question by entering your answers in the tabs below. At what amount will Fuzzy Monkey report its investment in the December 31,2021 balance sheet? (Do not round intermediate At what amount wil Fuzzy Monkey report its investment in the December in places, (1. e. 2,5,500,000 should be entered as 5.50). ) Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate), 4. At what amount will Fuzzy Monkey report its investment in the December 31, 2021 balance sheet? 5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? (ff more than one approach is possible. Indicate the one that is most likely.) Complete this question by entering your answers in the tabs below. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? (If more than one approach is possible, indicate the one that is most likely.) (Do not round intermediate calculations. Enter all amounts as positive values. Enter your answers in millions rounded to 1 decimal place, (1.e, 5,500,000 should be entered as 5.5).)

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