Live Large Inc. had the following transactions involving non-strategic investments during 2023. 2023 Apr. 1 Paid $111,050 to buy a 90-day term deposit, $111,000 principal amount, 5.5%, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. 12 Purchased 4,100 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 2,900 common shares of Purple Car Corp. at $50.00. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 1,250 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 $78,768 a 7.5 %, $76,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 6.9%. 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 2,050 of the Blue Balloon Ltd. common shares at $26.50. Sept. 1 Received a $2.20 per share cash dividend on the Purple Car Corp. common shares. Dec. 15 Received a $1.60 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, $25.70; Purple Car Corp. shares, $43.45; Yellow Tech shares, $18.80. 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 $26.75. 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.) July 1/23 Cash Interest Received Period Interest Income Premium Unamortized Amort. Premium Carrying Value

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Chapter1: Financial Statements And Business Decisions
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Live Large Inc. had the following transactions involving non-strategic investments during 2023.
2023
Apr. 1 Paid $111,050 to buy a 90-day term deposit, $111,000 principal amount, 5.5%, dated April 1. There was a $50
transaction fee included in the above-noted payment amount.
12
Purchased 4,100 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 2,900 common shares of Purple Car Corp. at $50.00. There was a $50 transaction fee included in the
above-noted payment amount.
20
Purchased 1,250 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 $78,768 a 7.5 %, $76,000 Space Explore Inc. bond that matures in eight years when the market
interest rate was 6.9%. 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 2,050 of the Blue Balloon Ltd. common shares at $26.50.
Sept. 1 Received a $2.20 per share cash dividend on the Purple Car Corp. common shares.
Dec. 15 Received a $1.60 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, $25.70; Purple Car
Corp. shares, $43.45; Yellow Tech shares, $18.80. 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 $26.75.
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.)
July 1/23
Dec. 31/23
June 30/24
Dec. 31/24
Cash
Interest
Received
Period
Interest
Income
Premium Unamortized
Amort.
Premium
Carrying Value
Transcribed Image Text:Live Large Inc. had the following transactions involving non-strategic investments during 2023. 2023 Apr. 1 Paid $111,050 to buy a 90-day term deposit, $111,000 principal amount, 5.5%, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. 12 Purchased 4,100 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 2,900 common shares of Purple Car Corp. at $50.00. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 1,250 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 $78,768 a 7.5 %, $76,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 6.9%. 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 2,050 of the Blue Balloon Ltd. common shares at $26.50. Sept. 1 Received a $2.20 per share cash dividend on the Purple Car Corp. common shares. Dec. 15 Received a $1.60 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, $25.70; Purple Car Corp. shares, $43.45; Yellow Tech shares, $18.80. 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 $26.75. 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.) July 1/23 Dec. 31/23 June 30/24 Dec. 31/24 Cash Interest Received Period Interest Income Premium Unamortized Amort. Premium Carrying Value
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.)
View transaction list
Journal entry worksheet
1
2 3 4 5 6 7 8
Record the purchase of 5.5% term deposit as short-term investment.
Note: Enter debits before credits.
Date
Apr 01, 2023
Assets
Record entry
General Journal
LIVE LARGE INC.
Partial Balance Sheet
December 31, 2023
Current Investments:
Non-current investments:
Clear entry
Debit
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.)
13
Credit
View general journal
Transcribed Image Text: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.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Record the purchase of 5.5% term deposit as short-term investment. Note: Enter debits before credits. Date Apr 01, 2023 Assets Record entry General Journal LIVE LARGE INC. Partial Balance Sheet December 31, 2023 Current Investments: Non-current investments: Clear entry Debit 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.) 13 Credit View general journal
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