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 $112,050 to buy a 90-day term deposit, $112,000 principal amount,

Live Large Inc. had the following transactions involving non-strategic investments during 2023.

2023 Apr.1 Paid $112,050 to buy a 90-day term deposit, $112,000 principal amount, 6.0%, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. 12 Purchased 4,200 common shares of Blue Balloon Ltd. at $23.00. There was a $50 transaction fee included in the above-noted payment amount.June9 Purchased 3,000 common shares of Purple Car Corp. at $50.50. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 1,300 common shares of Yellow Tech Ltd. at $16.50. There was a $50 transaction fee included in the above-noted payment amount.July1 Purchased for $79,752 a 8.0%, $77,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 7.4%. 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 2,100 of the Blue Balloon Ltd. common shares at $26.75.Sept.1 Received a $2.30 per share cash dividend on the Purple Car Corp. common shares.Dec.15 Received a $1.35 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, $25.80; Purple Car Corp. shares, $43.55; Yellow Tech shares, $19.05. 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 $27.00.

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.) Record the purchase of a 8.0%, 8-year bond Jul1,2023

.....

  • Record the collection of term deposit and interest earned Jul3

.....

  • Record the collection of dividend income. jul 15
  • Record the sale of short-term investment.jul28
  • Record the collection of dividend income Sept 1
  • Record the collection of dividend income dec 15
  • Record the collection of interest on the bond. dec31
  • Record fair value adjustment. dec 31
  • Record the sale of investment. feb 16. 2024

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

Students also viewed these Accounting questions