Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

By using financial calculator Live Large Inc. had the following transactions involving non-strategic investments during 2023. 2023 Apr. 1 Paid $111,050 to buy a 90-day

image text in transcribed

image text in transcribedimage text in transcribedimage text in transcribedBy using financial calculator

Live Large Inc. had the following transactions involving non-strategic investments during 2023. 2023 Apr. 1 Paid $111,050 to buy a 90-day term deposit, \$111,000 principal amount, 5.5\%, dated April 1. There was a \$50 transaction fee included in the above-noted payment amount. 12 Purchased 4,100 common shares of Blue Balloon Ltd. at $22.75. There was a $50 transaction fee included in the above-noted payment amount. June 9 Purchased 2,900 common shares of Purple Car Corp. at $50.00. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 1,250 common shares of Yellow Tech Ltd. at $16.25. There was a $50 transaction fee included in the above-noted payment amount. July 1 Purchased for $78,768 a 7.5%,$76,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 6.9%. There was a $50 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning December 31, 2023. Live Large Inc. plans to hold this investment until maturity. 3 Received a cheque for the principal and accrued interest on the term deposit that matured on June 30. 15 Received a $0.95 per share cash dividend on the Blue Balloon Ltd. common shares. 28 Sold 2,050 of the Blue Balloon Ltd. common shares at $26.50. Sept. 1 Received a $2.20 per share cash dividend on the Purple Car Corp. common shares. Dec. 15 Received a $1.60 per share cash dividend on the remaining Blue Balloon Ltd. common shares owned. 31 Received the interest on the Space Explore Inc. bond. 31 The fair values of Live Large Inc.'s investments on this date were Blue Balloon shares, $25.70; Purple Car Corp. shares, \$43.45; Yellow Tech shares, $18.80. Assume the fair value and the carrying value of the Space Explore bond were equal. Feb. 16 Sold the remaining Blue Balloon shares at $26.75. Required: 1. Prepare an amortization schedule for the Space Explore bond showing only 2023 and 2024 . (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values. Use 365 days in a year.) 2. Prepare journal entries to record the preceding transactions. (Round your intermediate and final answers to the nearest whole dollar amount. Use 365 days in a year.) Journal entry worksheet Record the purchase of 5.5% term deposit as short-term investment. Note: Enter debits before credits. 3. Show how Live Large Inc.'s investments will appear on its December 31, 2023, balance sheet. (Round your intermediate and final answers to the nearest whole dollar amount.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Concepts And Applications For Managerial Decision Making

Authors: Ralph S. Polimeni, James A. Cashin, Frank J. Fabozzi, Arthur H. Adelberg

2nd Edition

0070103100, 978-0070103108

More Books

Students also viewed these Accounting questions

Question

Describe the concept of corporate social responsibility.

Answered: 1 week ago

Question

Explore the concept of business ethics.

Answered: 1 week ago

Question

Discuss human resource management issues for small businesses.

Answered: 1 week ago