Problem $12-2($Algo$)$ Trading securities; bond investment; effective interest; financial statement effects $[$LO$12-1,12-3]$

Fuzzy Monkey Technologies, Incorporated purchased as a short$-$term investment $$110$ million of $10\%$ bonds, dated January $1,$ on January $1.2024.$ Management intends to include the investment in a short$-$term, active trading portfolio. For bonds of similar risk and maturity the market yield was $12\%.$ The price paid for the bonds was $$94$ million. Interest is received semiannually an June $30$ and December $31.$ Due to changing market conditions, the fair value of the bonds at December $31,2024,$ was $$100$ million.

Required:

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? $($If more than one approach is possible, indicate the one that is most likely.$)$