PREPARE JOURNAL ENTRIES FOR THE RECORDS LISTED FROM A-J...

Additional information from the accounting records Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 201S at a gain of S2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents c. A machine originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Page 1274 Most major components of the machine were unharmed and were sold for $17 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by S3 million e. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment. f L and costing S46 million was acquired by issuing S23 million cash and a 15%, four-year, S23 million note payable to the seller g. The right to use a building was acquired with a 15-year lease agreement present value of lease payments, $82 million Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2018 h. S60 million of bonds were retired at maturity. i. In February, Arduous issued a 4% stock dividend (4 million shares. The market price of the S5 par value common stock was $7.50 per share at that time. j. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million