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 $220 million of 8% 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 10%. The price paid for the bonds was $201 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, 2021, was $210 million. 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 likely.) Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Reg 5 Prepare the relevant journal entries on the respective dates (record the interest at the eff transaction/event, select "No journal entry required" in the first account field. Do not rour answers in millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.! View transaction list Journal entry worksheet 1 N 3 Record Fuzzy Monkey's investment on bonds on January 1, 2021. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2021 Record entry Clear entry View general jour Red 103 Reg 4 > Complete this question by entering your answers in the tabs below. Req 1 to 3 Reg 4 Reg 5 repare the relevant journal entries on the respective dates (record the interest at the effecti ransaction/event, select "No journal entry required" in the first account field. Do not round in nswers in millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.50). View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Req 1 to 3 Reg 4 Reg 5 repare the relevant journal entries on the respective dates (record the interest at the effecti ransaction/event, select "No journal entry required" in the first account field. Do not round ir nswers in millions rounded to 2 decimal places, (l.e., 5,500,000 should be entered as 5.50). View transaction list Journal entry worksheet 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 $220 million of 8% 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 10%. The price paid for the bonds was $201 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, 2021, was $210 million. 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 likely.) Complete this question by entering your answers in the tabs below. Req 1 to 3 Reg 4 Reg 5 At what amount will Fuzzy Monkey report its investment in the December 31, 2021 balan intermediate calculations. Enter your answer in millions rounded to 2 decimal places, (i.e. 5.50).) Investment million Prev 1 of 10 Next > Problem 12-1 (Algo) Securities held-to-maturity; bond investment; effective interest (L012-1, 12-2] Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $220 million of 8% 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 10%. The price paid for the bonds was $201 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, 2021. was $210 million. 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 likely.) Complete this question by entering your answers in the tabs below. Req 1 to 3 Req4 Req5 How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? possible, indicate the one that is most likely.) (Do not round intermediate calculations. En Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be enti Operating cash flow Investing cash flow million million