P14-15-Case Analysis - Livermore Laboratories Date Journal Entries Debit 1-Jul-06 Investment in Bonds $16,000,000 Discount on investment Cash To

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Unformatted text preview: Livermore Laboratories Date Journal Entries Debit 1-Jul-06 Investment in Bonds $16,000,000 Discount on investment Cash To record bond purchase-Bracecourt 1-Oct-06 Investment in Bonds $30,000,000 Premium for Bond Investment $1,160,000 Investment Receivable ($30,000,000 x 12% x 4/12) $1,200,000 Cash To record bond purchase-Framm 1-Dec-06 Cash ($30,000,000 x 12%)/2 $1,800,000 Interest Receivable-from October 1, 2006 Premium on investment (6 months) Interest Revenue ($30000000*12%*2/12)-Premium To record interest on Framm bonds 31-Dec-06 Interest Receivable ($30,000,000 x 12% x 1/12) $300,000 Premium on investment (1 month) Interest Revenue To accrue interest on Framm bonds Interest Receivable ($16,000,000 x 10% x 6/12) $800,000 Discount on investment ($1250 x 6 months) $7,500 Interest Revenue To accrue interest on Bracecourt bonds 1-Jan-07 Interest Receivable ($16,000,000 x 10% x 6/12) $800,000 Interest Revenue To record interest on Bracecourt bonds 1-Jun-07 Interest Receivable ($30,000,000 x 12% x 6/12)...
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This note was uploaded on 03/10/2011 for the course ACCOUNTING ACC306 taught by Professor Can'tremember during the Spring '10 term at Ashford University.

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P14-15-Case Analysis - Livermore Laboratories Date Journal Entries Debit 1-Jul-06 Investment in Bonds $16,000,000 Discount on investment Cash To

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