Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Live Large Inc. had the following transactions involving non-strategic investments during 2023. 2023 Apr. 1 Paid $104,050 to buy a 90-day tere deposit, $104,000

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Live Large Inc. had the following transactions involving non-strategic investments during 2023. 2023 Apr. 1 Paid $104,050 to buy a 90-day tere deposit, $104,000 principal amount, 7.0%, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. 12 Purchased 3,400 common shares of Blue Balloon Ltd. at $23.25. There was a $50 transaction fee included in the above-noted payment amount. June 9 Purchased 2,200 common shares of Purple Car Corp. at $51.50. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 900 conson shares of Yellow Tech Ltd. at $16.75. There was a $50 transaction fee included in the above-noted payment amount. July 1 Purchased for $71,377 a 9.0%, $69,000 Space Explore Inc. bond that matures in eight years when the market interest rate. was 8.4%. 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 1,700 of the Blue Balloon Ltd. common shares at $27.00. Sept. 1 Received a $2.50 per share cash dividend on the Purple Car Corp. common shares. Dec. 15 Received a $1.55 per share cash dividend on the remaining Blue Balloon Ltd. connon shares owned. 2024 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, $25.00; Purple Car Corp. shares, $42.75; Yellow Tech shares, $17.05. Assume the fair value and the carrying value of the Space Explore bond were equal. Feb. 16 Sold the remaining Blue Balloon shares at $27.25. Required:

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_2

Step: 3

blur-text-image_3

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

Financial Reporting & Analysis Using Financial Accounting Information

Authors: Charles H. Gibson

11th edition

324657420, 978-0324657425

More Books

Students also viewed these Accounting questions