Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January...

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Fuzzy Monkey Technologies, Inc., purchased as a long-terminvestment $80 million of 8% bonds, dated January 1, on January 1,2018. Management has the positive intent and ability to hold thebonds until maturity. For bonds of similar risk and maturity themarket yield was 10%. The price paid for the bonds was $66 million.Interest is received semiannually on June 30 and December 31. Dueto changing market conditions, the fair value of the bonds atDecember 31, 2018, was $70 million.
Required:
1. to 3. Prepare the relevant journal entries on the respectivedates (record the interest at the effective rate).
4. At what amount will Fuzzy Monkey report its investment in theDecember 31, 2018, balance sheet?
5. How would Fuzzy Monkey's 2018 statement of cash flows beaffected by this investment?

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Fuzzy Monkey Technologies, Inc., purchased as a long-terminvestment $80 million of 8% bonds, dated January 1, on January 1,2018. Management has the positive intent and ability to hold thebonds until maturity. For bonds of similar risk and maturity themarket yield was 10%. The price paid for the bonds was $66 million.Interest is received semiannually on June 30 and December 31. Dueto changing market conditions, the fair value of the bonds atDecember 31, 2018, was $70 million.Required:1. to 3. Prepare the relevant journal entries on the respectivedates (record the interest at the effective rate).4. At what amount will Fuzzy Monkey report its investment in theDecember 31, 2018, balance sheet?5. How would Fuzzy Monkey's 2018 statement of cash flows beaffected by this investment?