URGENT
Fuzzy Monkey Technologies, Incorporated purchased as a short-term investment $220 million of 8% bonds, dated January 1, on January 1, 2024. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yleid was 10%. The price paid for the bonds was $201 milison. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31,2024 , was $210 million. 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, 2024 balance sheet? 4-b. Prepare any entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey's 2024 statement of cash flows be affected by this investment? of 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 journal entries on the respective dates (record the interest at the effective rate). Note: If ne entry is required for a transaction/event, select "No journal entry repuired" is the frst accoiat feld, Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places, 0,6,5,500,000 should be entered as 5.59). Fuzzy Monkey Technologies, Incorporated purchased as a short-term investment $220 million of 8% bonds, dated January 1, on January 1, 2024. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yleid was 10%. The price paid for the bonds was $201 milison. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31,2024 , was $210 million. 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, 2024 balance sheet? 4-b. Prepare any entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey's 2024 statement of cash flows be affected by this investment? of 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 journal entries on the respective dates (record the interest at the effective rate). Note: If ne entry is required for a transaction/event, select "No journal entry repuired" is the frst accoiat feld, Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places, 0,6,5,500,000 should be entered as 5.59)
