Live Large Inc. had the following transactions Involving non-strategic Investments during 2023. 2023 Apr. 1 Paid $120,050 to buy a 90-day term deposit, $120,000 principal amount, 5.0 %, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. 12 Purchased 5,000 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 3,800 common shares of Purple Car Corp. at $49.50. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 1,700 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 $88,155 a 7.0%, $85,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 6.4%. 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 2,500 of the Blue Balloon Ltd. common shares at $26.50. Sept. 1 Received a $2.10 per share cash dividend on the Purple Car Corp. common shares. Dec. 15 Received a $1.45 per share cash dividend on the remaining Blue Balloon Ltd. common 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, $26.60; Purple Car Corp. shares, $44.35; Yellow Tech shares, $21.05. 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: 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.) Cash Interest Received Period Interest Income Premium Unamortized Amort. Premium Carrying Value July 1/23 Dec. 31/23 June 30/24 Dec. 31/24

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Live Large Inc. had the following transactions Involving non-strategic Investments during 2023.
2023
Apr. 1 Paid $120,050 to buy a 90-day term deposit, $120,000 principal amount, 5.0 %, dated April 1. There was a $50 transaction
fee included in the above-noted payment amount.
12 Purchased 5,000 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 3,800 common shares of Purple Car Corp. at $49.50. There was a $50 transaction fee included in the above-noted
payment amount.
20 Purchased 1,700 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 $88,155 a 7.0%, $85,000 Space Explore Inc. bond that matures in eight years when the market interest rate
was 6.4%. 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 2,500 of the Blue Balloon Ltd. common shares at $26.50.
Sept. 1 Received a $2.10 per share cash dividend on the Purple Car Corp. common shares.
Dec. 15 Received a $1.45 per share cash dividend on the remaining Blue Balloon Ltd. common 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, $26.60; Purple Car Corp. shares,
$44.35; Yellow Tech shares, $21.05. 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:
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.)
Cash
Interest
Received
Period
Interest
Income
Premium Unamortized
Amort.
Premium
Carrying Value
July 1/23
Dec. 31/23
June 30/24
Dec. 31/24
Transcribed Image Text:Live Large Inc. had the following transactions Involving non-strategic Investments during 2023. 2023 Apr. 1 Paid $120,050 to buy a 90-day term deposit, $120,000 principal amount, 5.0 %, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. 12 Purchased 5,000 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 3,800 common shares of Purple Car Corp. at $49.50. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 1,700 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 $88,155 a 7.0%, $85,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 6.4%. 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 2,500 of the Blue Balloon Ltd. common shares at $26.50. Sept. 1 Received a $2.10 per share cash dividend on the Purple Car Corp. common shares. Dec. 15 Received a $1.45 per share cash dividend on the remaining Blue Balloon Ltd. common 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, $26.60; Purple Car Corp. shares, $44.35; Yellow Tech shares, $21.05. 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: 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.) Cash Interest Received Period Interest Income Premium Unamortized Amort. Premium Carrying Value July 1/23 Dec. 31/23 June 30/24 Dec. 31/24
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