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please answer s10-2 and s10-3 requirements Ch 10 Homework S10-2 Accounting for debt investments Learning Objective 2 On January 1, 2018, the Chaucer's Restaurant decides

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Ch 10 Homework S10-2 Accounting for debt investments Learning Objective 2 On January 1, 2018, the Chaucer's Restaurant decides to invest in Lake Turner bonds. The bonds mature on December 31, 2023, and pay interest on June 30 and December 31 at 4% annually. The market rate of interest was 4% on January 1, 2018, so the $90,000 maturity value bonds sold for face value. Chaucer's intends to hold the bonds until December 31, 2023. Requirements 1. Journalize the transactions related to Chaucer's investment in Lake Turner bonds during 2018. 2. In what category would Chaucer's report the investment on the December 31, 2018, balance sheet? S10-3 Accounting for equity investments Learning Objective 3 On January 1, 2018, Bark Company invests $10,000 in Roots, Inc. stock. Roots pays Bark a $400 dividend on August 1, 2018. Bark sells the Roots's stock on August 31, 2018, for $10,450. Assume the investment is categorized as a short-term equity investment and Bark Company does not have significant influence over Roots, Inc. Requirements 1. Journalize the transactions for Bark's investment in Roots's stock 2. What was the net effect of the investment on Bark's net income for the year ended December 31, 2018

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