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Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $220 million of 8% bonds, dated January 1, on January 1, 2021. Management intends to have the investment available for sale when circumstances warrant. 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-a. At what amount will Fuzzy Monkey report its investment in the December 31, 2021, balance sheet? 4-b. Prepare the 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.)

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Req 1 to 3 Req 4A Req 4B Req 5 Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). (If no entry is for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calcul Enter your answers in millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.50).) No Date General Journal Credit Debit 220.00 January 01, 2021 Investment in bonds Discount on bond investment Cash 19.00 201.00 2 June 30, 2021 Cash Discount on bond investment Interest revenue 3.52 X 0.50 X 4.02 X 3 December 31, 202 Cash 3.52 Discount on bond investment Interest revenue Req 1 to 3 Reg 4A Req 4B Req 5 At what amount will Fuzzy Monkey report its investment in the December 31, 2021, balance sheet? (Do not round intermediate calculations. Enter your answer in millions (i.e., 10,000,000 should be entered as 10).) Investment million Req 1 to 3 Req 4A Req 4B Req 5 Prepare the entry necessary to achieve this reporting objective. (If no entry is required for a transaction/event, select 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).) No Date General Journal Debit Credit 1 December 31, 2021 Fair value adjustment Gain on investments (unrealized, OCI) Req 4A Req 5 > Req 1 to 3 Req 4A Req 4B Req 5 How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? (If mo possible, indicate the one that is most likely.) (Do not round intermediate calculations. Enter alla Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as Operating cash flow Investing cash flow million million inflow outflow

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