Fuzzy Monkey Technologies, Incorporated purchased as a long$-$term investment $$80$ million of $6\%$ bonds, dated January $1,$ on January $1,2024.$ Management intends to have the investment available for sale when circumstances warrant. For bonds of similar risk and maturity the market yield was $8\%.$ The price paid for the bonds was $$64$ 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 $$70$ 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 the entry necessary to achieve this reporting objective.

$5.$ 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.

Req $4$A

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 $5\mathrm{.}50).$

Journal entry worksheet

$1$ Record Fuzzy Monkey's investment on bonds on January $1,2024.$

$2$ Record the interest revenue on June $30,2024$

$3$ Record the interest revenue on december $31,2024$

Note: Enter debits before credits.