Live Large Inc. had the following transactions involving non-strategic investments during 2020.

Required

1. Prepare an amortization schedule for the Space Explore bond showing only 2020 and 2021. Round your intermediate and final answers to the nearest whole dollar.

2. Prepare journal entries to record the preceding transactions.

3. Show how Live Large Inc.?s investments will appear on its December 31, 2020, balance sheet.

Analysis Component: How is the investment income recorded on the Blue Balloon Ltd. shares on December 31, 2020, different from the investment income from the sale of shares recorded on February 16, 2021?

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2020 Paid $108,000 to buy a 90-day term deposit, $108,000 principal amount, 6.5%, dated April 1. Purchased 3,800 common shares of Blue Balloon Ltd. at $24.25. Apr. 12 Purchased 2,600 common shares of Purple Car Corp. at $51.00. Purchased 1,100 common shares of Yellow Tech Ltd. at $17.75. June 20 Purchased for $75,561 a 8.5%, $73,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 7.9%. Interest is paid semiannually beginning December 31, 2020. Live Large Inc. plans to hold this investment until maturity. July 3 Received a cheque for the principal and accrued interest on the term deposit that matured on June 30. Received a $0.95 per share cash dividend on the Blue Balloon Ltd. common shares. Sold 1,900 of the Blue Balloon Ltd. common shares at $28.00. Received a $2.90 per share cash dividend on the Purple Car Corp. common shares. Received a $1.45 per share cash dividend on the remaining Blue Balloon Ltd. common shares owned. 15 28 Sept. Dec. 15 31 Received the interest on the Space Explore Inc. bond. The fair values of Live Large Inc's investments on this date were Blue Balloon shares, $25.40; Purple Car Corp. shares, $43.15; Yellow Tech shares, $18.05. Assume the fair value and the carrying value of the Space Explore bond were equal. 31 2021 Feb. 16 Sold the remaining Blue Balloon shares at $28.25.