Fuzzy Monkey Technologies acquired $200 million of 10% bonds for $178 million on January 1, 2024, with plans to hold until maturity. Interest will be received semiannually, and the fair value of the bonds is expected to rise to $190 million by December 31, 2024. The document outlines the required journal entries and the impact of this investment on the company's financial statements.

1. Fuzzy Monkey Technologies, Incorporated purchased as a long-term investment $200 million of
10% 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 12%
. The price paid for the bonds was $178 million. Interest is received semiannually on June 30 and
December 31. Due to changing market conditions, the fair value of the bonds at December
31,2024 , was $190 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.) 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, (i.e., 5,500,000 should be entered as 5.5). Fuzzy Monkey
Technologies, Incorporated purchased as a long-term investment $200 million of 10% 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 12% . The
price paid for the bonds was $178 million. Interest is received semiannually on June 30 and
December 31. Due to changing market conditions, the fair value of the bonds at December
31,2024 , was $190 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.) 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 (i.e., 5,500,000 should be entered as 5.50). Fuzzy Monkey
Technologies, Incorporated purchased as a long-term investment $200 million of 10% 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 12% . The
price paid for the bonds was $178 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,
2024, was $190 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.) 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 transaction/event, select "No journal entry
required" in the first account field. Do not round intermediate calculations. Enter your answers in
millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.50). Fuzzy Monkey
Technologies, Incorporated purchased as a long-term investment $200 million of 10% 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 12% . The
price paid for the bonds was $178 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,

2. 2024, was $190 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.) 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 transaction/event, select "No journal entry
required" in the first account field. Do not round intermediate calculations. Enter your answers in
millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.50). Fuzzy Monkey
Technologies, Incorporated purchased as a long-term investment $200 million of 10% 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 12% . The
price paid for the bonds was $178 million. Interest is received semiannually on June 30 and
December 31. Due to changing market conditions, the fair value of the bonds at December
31,2024 , was $190 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.) 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 transaction/event, select "No journal entry
required" in the first account field. Do not round intermediate calculations. Enter your answers in
millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.50).