Acc306 Intermediate Accounting: P14-15 The following transactions relate to bond investments of

Acc306 Intermediate Accounting

P14-15
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.
2006
July 1 Purchased $16 million of Bracecourt Corporation 10% debentures, due in 20 years (June 30, 2026), for $15.7 million. Interest is payable on January 1 and July 1 of each year.
Oct. 1 Purchased $30 million of 12% Framm Pharmaceuticals debentures, due May 31, 2016, for $31,160,000 plus accrued interest. Interest is payable on June 1 and Dec 1 of each year.
1-Dec Received interest on the Framm bonds.
31-Dec Accrued interest
2007
1-Jan Received interest on the Bracecourt bonds
1-Jun Received interest on the Framm bonds
1-Jul Received interest on the Bracecourt bonds
1-Sep Sold $15 million of the Framm bonds at 101 plus accrued interest
1-Dec Received interest on the remaining Framm bonds
31-Dec Accrued interest
2008
1-Jan Received interest on the Bracecourtt bonds
28-Feb Sold the remainder of the Framm bonds at 102 plus accrued interest
31-Dec Accrued interest

Required:
Prepare the appropriate journal entries for these long-term bond investment.
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