first 3 required

e necesitated by the restructuring of the debe JU 2. December 31, 2012 3. December 31, 2013 PROBLEMS 12-1 maturity in bed the interest L01 Fuzzy Monkey Technologies purchased as a long-term investment $80 million of quoted boods, duted January 1, on January 1, 2012. Management has the positive intent and ability to bold the bonds until manority For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was 566 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, 2012, was $70 million Required: 1. Prepare the journal entry to record Fuzzy Monkey's investment on January 1, 2012 2. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2012 at the effective rate), 3. Prepare the journal entries by Fuzzy Monkey to record interest on December 31, 2012 at the effective rate)