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On August 1, 2018, Lokis Restaurant decides to invest excess cash of S55,400 from the tourist season by purchasing a Robin, Inc. bond at face
On August 1, 2018, Lokis Restaurant decides to invest excess cash of S55,400 from the tourist season by purchasing a Robin, Inc. bond at face value. At year-end, December 31, 2018, Robin's bond had a market value of S52 400. The investment is categorized as an available-for-sale debt investment and will be held for the short-term Read the requirements. Requirement 1. Jourmalize the transactions for Loki's investment in Robin, Inc. for 2018. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Begin by journalizing Lokis investment in the Robin, Inc. bond on August 1, 2018 Date Accounts and Explanation Debit Credit Aug 1 Now journaize the yar-end adjustment, if any Date Accounts and Explanation Debit Credit Dec. 31 Requirement 2. In what category and at what value would Loki report the asset on the December 31, 2018, balance sheet? In what account would the market price change in Robin's stock be reported, if at all? The Robin investment would be reported as of$ ] Requirement 3. What was the net effect of the investment on Loki's net income for the year ended December 31, 2018? The investment on the December 31, 2018, balance sheet in the amount The markst price change | for the year ended December 31, 2018
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