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Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $70 million of 6% bonds, dated January 1, on January 1, 2016. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $55 milon. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2016, was $60 million Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). (If no entry is required for a transactionlevent, 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 5.50).) Answer is complete and correct. 0 Date General Journal Debit Credit January 01 2016 70.00 Investment in bonds 15.00 55.00 Discount on bond investment Cash June 30 2016 Cash 2.10 Discount on bond investment 0.10 Interest Revenue 2.20 December 31 2016 2.10 Discount on bond investment 0.10 4.1 At what amount will Fuzzy Monkey report its investment in the December 31, 2016, balance sheet? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.50)) Answer is complete and correct. Investment $60.00million 4.2 Prepare any entry necessary to achieve this reporting objective. (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 5.50).) Answer is complete and correct. 0 Date General Journal Debit Credit December 3 Fair value adjustment 4.80 2016 Net unrealized holding gains and losses-/S 4.80

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