Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $220 million of 8% bonds, dated January 1, on January 1, 2021. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $201 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, 2021, was $210 million.

Answer and Explanation:

Journal Entries - Fuzzy Monkey Technologiesn Inc

Debit (In Million)Credit (In Million)

1.1-Jan-21

Dr Investment in Bond $220.00

Cr To Cash $201.00

Cr To Discount on bond investment $19.00

(Being investment in bond recorded)

2.30-Jun-21

Dr Cash ($220 *8% * 6/12)$8.80

Dr Discount on bond investment

$1.25

Cr To Interest revenue

($201*10%*6/12) $10.05

(Being revenue recoginition for bond interest and discount amortized)

3.31-Dec-21

Dr Cash ($220 *8% * 6/12)$8.80

Dr Discount on bond investment $1.31

Cr To Interest revenue

($202.25*10%*6/12) $10.11

(Being revenue recoginition for bond interest and discount amortized)

4a:

Fuzzy monkey report its investment on December 31, 2021 balance sheet at fair value which is $210 million

4b:

Journal Entries - Fuzzy Monkey Technologies Inc.

Debit (In Million)Credit (In Million)

131-Dec-21

Dr Fair value adjustment ($210 - $201 - $1.25 - $1.31)$6.44

Cr To Unrealized holding gain or loss - OCI $6.44

(Being adjusting entry to record investment at fair value)

5:

Statement of cash flows (Partial)

For 2021

Amount (In million)

Cash flow from operating activities:

Interest received$17.60Inflow

Cash flow from investing activities:

Cash paid for purchase of investment$201.00Outflow

answer; drop shippers;

if kj of heat is transferred o 1200 g liquid water at 36'c, what would the new temperature of the water be? (he specific heat capacity of liquid water is 4.186 j/g''c)

a. 15'c

b.100'c

c.51'c

d.36'c