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On November 1, 2024, Loki's Restaurant decides to...

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Accounting

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On November 1, 2024, Loki's Restaurant decides to invest excess cash of $56,000 from the tourist season by purchasing a Desert, Inc. bond at face value. At year-end, December 31,2024, Desert's bond had a market value of $52,000. The investment is categorized as an available-for-sale debt investment and will be held for the short-lerm. Read the requirements. Requirement 1. Journalize the transactions for Loki's investment in Desert, Inc. for 2024. (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 Loki's investment in the Desert, Inc., bond on November 1, 2024 Requirements 1. Journalize the transactions for Loki's investment in Desert, Inc. for 2024. 2. In what category and at what value would Loki report the asset on the December 31, 2024, balance sheet? In what account would the market price change in Desert's stock be reported, if at all? 3. What was the net effect of the investment on Loki's net income for the year ended December 31, 2024

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