The following transactions relate to bond investments of Livermore Laboratories. The companys fiscal year ends...
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The following transactions relate to bond investments of Livermore Laboratories. The companys fiscal year ends on December 31. Livermore uses the straight-line method to determine interest.
2024
July 1Purchased $28 million of Bracecourt Corporation 12% debentures, due in 20 years (June 30, 2044), for $27.4 million. Interest is payable on January 1 and July 1 of each year. October 1Purchased $42 million of 14% Framm Pharmaceuticals debentures, due May 31, 2034, for $44,552,000 plus accrued interest. Interest is payable on June 1 and December 1 of each year. December1 receivedd interest on the Framm bonds. December 31Accrued interest.
2025
January 1Received interest on the Bracecourt bonds. June 1Received interest on the Framm bonds. July 1Received interest on the Bracecourt bonds. September 1Sold $21.0 million of the Framm bonds at 102 plus accrued interest. December 1Received interest on the remaining Framm bonds. December 31Accrued interest.
2026
January 1Received interest on the Bracecourt bonds. February 28Sold the remainder of the Framm bonds at 103 plus accrued interest. December 31Accrued interest.
Record the sale of the remainder of the Framm bonds at 103 plus accrued interest.
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