Problem 12-2 (Algo) Trading securities; bond investment; effective interest [LO12-1, 12-3] Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $230 million of 10% bonds, dated January 1 , on January 1. 2021. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 12%. The price paid for the bonds was $210 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 $220 miliion. Required: 1. to 3. Prepare the relevant joumal entries on the respective dates (record the interest at the effective rate) 4-0. At what amount will Fuzzy Monkey report its investment in the December 31,2021 balance sheet? 4-b. Prepare any entry necessary to achieve this reporting objective 5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this imvestment? (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. Prepare the relevant foumal entries on the respective dates (record the interest at the effective rate). (If no entry is required for a transactbon/event, select "No Joumal entry required" in the first account field. Do not round intermediate cakulations. Enter your answersin millions rounded to 2 decimal places, (1.6,5,500,000 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. Prepare the relevant journal entries on the respective dates (record the interest at the effective rat transaction/event, select "No journal entry required" in the first account field. Do not round interme answers in millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.50).) Journal entry worksheet 1 Record the interest revenue on June 30, 2021. Note: Enter debits before sredits. Journal entry worksheet Record the interest revenue on December 31, 2021. Note: Enter debits before credits. Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $230 million of 10% bonds, dated January 1 , on January 1 . 2021. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar nisk and maturity the market yield was 12%. The price paid for the bonds was $210 million. Interest is recelved semiannually on June 30 and December 31 Due to changing market conditions, the fair value of the bonds at December 31,2021 , was $220 milion. Required: 1. to 3. Prepare the relevant joumal entries on the respective dates (record the interest at the effective rate) 4-0. At what amount will Fuzzy Monkey report its investment in the December 31,2021 balance sheet? 4-b. Prepare any entry necessary to achieve this reporting objective 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. At what amount will Fuzzy Monkey report its investment in the December 31,2021 balance shent? (Do not round intermediate calculations. Enter your answer in milions (1.8,10,000,000 should be entered as 10).) Prepare any entry necessary to achieve this reporting objective. (If no entry is required for a transaction/event, select "No jol required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decim (1.e.5,500,000 should be entered as 5,50).) Journal entry worksheet Record any necessary entry to report the investment at the correct value on the balance sheet. 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-a. At what amount will Fuzzy Monkey report its investment in the December 31, 2021 balance sheet? 4-b. Prepare any entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? (if more than one approach is po 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, (i,e, 5,500,000 should be entered as 5.5).)