i need the answer quickly The following transactions relate to bond investments of Livermore Laboratories. The company's fiscal year ends on December 31.Livermore uses the straight-line method to determine interest.2024July 1 Purchased $31 million of Bracecourt Corporation 128 debentures, due in 20 years (June 30, 2044), for $30.7million. Interest is payable on January 1 and July 1 of each year.October 1 Purchased $45 million of 14 Framm Pharmaceuticals debentures, due May 31, 2034, for $47,900,000 plusaccrued interest. Interest is payable on June 1 and December 1 of each year.December 1 Received interest on the Framm bonds.December 31 Accrued interest.2025January 1 Received interest on the Bracecourt bonds.June 1 Received interest on the Framm bonds.July 1 Received interest on the Bracecourt bonds.September 1 Sold $22.5 million of the Framm bonds at 103 plus accrued interest.December 1 Received interest on the remaining Framm bonds.December 31 Accrued interest.2026January 1 Received interest on the Bracecourt bonds.February 28 Sold the remainder of the Framm bonds at 104 plus accrued interest.December 31 Accrued interest.Required:1. Prepare the appropriate journal entries for these long-term bond investments.2. By how much will Livermore Labs' earnings increase in each of the three years as a result of these investments? (Ignore incometaxes.)Answer is not complete.Complete this question by entering your answers in the tabs below.

Bonds are a kind of debt securities where investors lend money to the corporation, governments or…

Answered: 1. Prepare the appropriate journal…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
The following transactions relate to bond investments of Livermore Laboratories. The company's fiscal year ends on December 31. Livermore uses the straight-line method to determine interest. 2024 July 1 Purchased $18 million of Bracecourt Corporation 12% debentures, due in 20 years (June 30, 2044), for $17.4 million. Interest is payable on January 1 and July 1 of each year. October 1 Purchased $32 million of 15% Framm Pharmaceuticals debentures, due May 31, 2034, for $33,392,000 plus accrued interest. Interest is payable on June 1 and December 1 of each year. December 1 Received interest on the Framm bonds. December 31 Accrued interest. 2025 January 1 Received interest on the Bracecourt bonds. June 1 Received interest on the Framm bonds. July 1 Received interest on the Bracecourt bonds. September 1 Sold $16.0 million of the Framm bonds at 102 plus accrued interest. December 1 Received interest on the remaining Framm bonds. December 31 Accrued interest. 2026 January 1 Received interest…
The following transactions relate to bond investments of Livermore Laboratories. The company's fiscal year ends on December 31. Livermore uses the straight-line method to determine interest. 2024 July 1 Purchased $22 million of Bracecourt Corporation 12% debentures, due in 20 years (June 30, 2044), for $21.1 million. Interest is payable on January 1 and July 1 of each year. October 1 Purchased $36 million of 14% Framm Pharmaceuticals debentures, due May 31, 2034, for $37,856,000 plus accrued interest. Interest is payable on June 1 and December 1 of each year. December 1 Received interest on the Framm bonds. December 31 Accrued interest. 2025 January 1 Received interest on the Bracecourt bonds. June 1 Received interest on the Framm bonds. July 1 Received interest on the Bracecourt bonds. September 1 Sold $18.0 million of the Framm bonds at 102 plus accrued interest. December 1 Received interest on the remaining Framm bonds. December 31 Accrued interest. 2026 January 1 Received interest…
The following transactions relate to bond investments of Livermore Laboratories. The company's fiscal year ends on December 31. Livermore uses the straight-line method to determine interest. 2024 July 1 Purchased $23 million of Bracecourt Corporation 12% debentures, due in 20 years (June 30, 2044), for $22.7 million. Interest is payable on January 1 and July 1 of each year. October 1 Purchased $37 million of 15% Framm Pharmaceuticals debentures, due May 31, 2034, for $38,972,000 plus accrued interest. Interest is payable on June 1 and December 1 of each year. December 1 Received interest on the Framm bonds. December 31 Accrued interest. 2025 January 1 Received interest on the Bracecourt bonds. June 1 Received interest on the Framm bonds. July 1 Received interest on the Bracecourt bonds. September 1 Sold $18.5 million of the Framm bonds at 103 plus accrued interest. December 1 Received interest on the remaining Framm bonds. December 31 Accrued interest. 2026 January 1 Received interest…
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Floyd Limited had the following transactions pertaining to debt investments. Jan. 1, 2020 Purchased 50 $1,000 Petal Co. 8% bonds for $50,000 cash. Interest is payable annually on January 1. Dec. 31, 2020 Accrued interest on the Petal Co. bonds. Jan. 1, 2021 Received interest on Petal Co. bonds. Jan. 1, 2021 Sold 30 Petal Co. bonds for $33,500. Instructions: Prepare the adjusting entry for the accrual of interest at December 31, 2021.
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1. Prepare the appropriate journal entries for these long-term bond investments. 2. By how much will Livermore Labs' earnings increase in each of the three years as a result of these investments? (Ignore income taxes.)