Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required: 1. to 3. Prepare the relevant journal entries on the respectlve dates (record the interest at the effective rate). 4. At what amount will

image text in transcribed
image text in transcribed
image text in transcribed
Required: 1. to 3. Prepare the relevant journal entries on the respectlve dates (record the interest at the effective rate). 4. At what amount will Fuzzy Monkey report its investment in the December 31,2024 balance sheet? 5. How would Fuzzy Monkey's 2024 statement of cash flows be affected by this investment? (If more than one approach is possit indicate the one that is most likely.) Answer is not complete. Complete this question by entering your answers in the tabs below. At what amount will Fuzzy Monkey report its investment in the December 31, 2024 balance sheet? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places (1.e., 5,500,000 should be entered as 5.50 ). Fuzzy Monkey Technologies, Incorporated purchased as a long-term investment $210 million of 6% bonds, dated January 1, on January 1, 2024. 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 $192 million. Interest is recelved semiannually on June 30 and December 31 . Due to changing market conditions, the fair value of the bonds at December 31,2024 , was $200 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 31,2024 balance sheet? 5. How would Fuzzy Monkey's 2024 statement of cash flows be affected by this investment? (If more than one approoch is possible. indicate the one that is most likely) Answer is not complete. 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). Note: If no entry is required for a tronsactionvevent, select "No journai entry required" in the first account ficld. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places, (1.e., 5,500,000 should be entered as 5.50). Fuzzy Monkey Technologies, Incorporated purchased as a long-term investment $210 million of 6% bonds, doted January 1 , on January 1, 2024. 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 $192 million. Interest is recelved semiannually on June 30 and December 31 . Due to changing market conditions, the fair value of the bonds at December 31,2024 , was $200 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 31,2024 balance sheet? 5. 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.) (x) Answer is not complete. Complete this question by entering your answers in the tabs below. 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,) Note: 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). Required: 1. to 3. Prepare the relevant journal entries on the respectlve dates (record the interest at the effective rate). 4. At what amount will Fuzzy Monkey report its investment in the December 31,2024 balance sheet? 5. How would Fuzzy Monkey's 2024 statement of cash flows be affected by this investment? (If more than one approach is possit indicate the one that is most likely.) Answer is not complete. Complete this question by entering your answers in the tabs below. At what amount will Fuzzy Monkey report its investment in the December 31, 2024 balance sheet? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places (1.e., 5,500,000 should be entered as 5.50 ). Fuzzy Monkey Technologies, Incorporated purchased as a long-term investment $210 million of 6% bonds, dated January 1, on January 1, 2024. 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 $192 million. Interest is recelved semiannually on June 30 and December 31 . Due to changing market conditions, the fair value of the bonds at December 31,2024 , was $200 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 31,2024 balance sheet? 5. How would Fuzzy Monkey's 2024 statement of cash flows be affected by this investment? (If more than one approoch is possible. indicate the one that is most likely) Answer is not complete. 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). Note: If no entry is required for a tronsactionvevent, select "No journai entry required" in the first account ficld. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places, (1.e., 5,500,000 should be entered as 5.50). Fuzzy Monkey Technologies, Incorporated purchased as a long-term investment $210 million of 6% bonds, doted January 1 , on January 1, 2024. 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 $192 million. Interest is recelved semiannually on June 30 and December 31 . Due to changing market conditions, the fair value of the bonds at December 31,2024 , was $200 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 31,2024 balance sheet? 5. 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.) (x) Answer is not complete. Complete this question by entering your answers in the tabs below. 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,) Note: 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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: D. Larry Crumbley, Lester E. Heitger, G. Stevenson Smith

6th Edition

0808034871, 9780808034872

More Books

Students also viewed these Accounting questions

Question

Explain how labour relations practices differ around the world.

Answered: 1 week ago