Problem $12-3($Algo$)$ Securities available$-$for$-$sale; bond investment; effective interest; financial

statement effects $[$ LO$12-1,12-4]$

Fuzzy Monkey Technologies, Incorporated purchased as a long$-$term investment $$60$ milion of $6\%$ bonds. dated January $1,$ on Janua

$1,2024.$ 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 $$46$ 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 $$50$ million.

Required:

to $3.$ Prepare the relevant journal entries on the respective dates $($record the interest at the effective rate$).$

$4-0.$ 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.

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 vour answers in millions rounded to

$1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$