Question
Live Large Inc. had the following transactions involving non-strategic investments during 2023. 2023 Apr. 1 Paid $113,050 to buy a 90-day term deposit, $113,000 principal
Live Large Inc. had the following transactions involving non-strategic investments during 2023.
2023 | |||
Apr. | 1 | Paid $113,050 to buy a 90-day term deposit, $113,000 principal amount, 6.5%, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. | |
12 | Purchased 4,300 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 3,100 common shares of Purple Car Corp. at $51.00. There was a $50 transaction fee included in the above-noted payment amount. | |
20 | Purchased 1,350 common 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 $80,737 a 8.5%, $78,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 7.9%. 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 2,150 of the Blue Balloon Ltd. common shares at $27.00. | ||
Sept. | 1 | Received a $2.40 per share cash dividend on the Purple Car Corp. common shares. | |
Dec. | 15 | Received a $1.40 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, $25.90; Purple Car Corp. shares, $43.65; Yellow Tech shares, $19.30. Assume the fair value and the carrying value of the Space Explore bond were equal. | ||
2024 | |||
Feb. | 16 | Sold the remaining Blue Balloon shares at $27.25. |
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.)
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.)
assets:
current investments:
...........................................................
...........................................................
non current investments:
...........................................................
...........................................................
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started