Amber Wilson is pleased with the growth of the business and has decided to invest its temporary excess cash in a brokerage account. The company had the following securities transactions in 2024.

Jul. 1 Purchased 8,000 shares in Adobe Outdoor Adventure Company for $3 per share. Canyon Canoe Company does not have significant influence over Adobe. Canyon plans to hold these shares for longer than a year and should record them in an account called Long-Term Investments.

7 Purchased 35 percent of the shares of Bison Backpacks Inc. consisting of 43,750 shares (out of a total of 125,000 shares) for $5 per share. Canyon Canoe Company has significant influence over Bison.

10 Purchased a bond at par from Camelot Canoes with a face value of $80,000. Canyon Canoe intends to hold the bond to maturity. The bond pays interest semi-annually on June 30 and December 31. Ignore the 10 days of accrued interest.

Sep. 30 Received dividends of $0.15 per share from Adobe.

Nov. 1 Received dividends of $0.30 per share from Bison.

Dec. 31 Received an interest payment of $3,200 from Camelot Canoes.

31 Bison Backpacks reported net income of $30,000 for the year.

31 Adjusted the Adobe shares for a market value of $2.98 per share.

Required

1. Journalize the transactions including any entries, if required, at December 31, 2024.

2. Determine the effect on Canyon Canoe Company's net income for the year for each of the three investments.