On August, 2018. Hanna’s Restaurant decides to invest

On August, 2018. Hanna’s Restaurant decides to invest excess cash of $55,600 from the tourist season by purchasing angin, Inc. bond a face value. At year-end, December 31, 2018. 

Eagle’s band had a market value of $82,200. The Investment is categorized as an amiable for sale debt investment and will be held for the short-tem Read the requirements.

Requirement 1. Journalize the transaction for Hanna’s investment in Eagle, Inc. for 2018.

Requirement 2. In what category and at what value would Harna report the asset on the December 31, 2018, balance sheet? In what account would the market price change in Eagle’s stock be reported ital?

Requirement 3. What was the net effect of the investment on Harna’s net income for the year ended December 31, 2018?