Brief Exercise 9-13 Blue Spruce Ltd. has a single investment that it acounts for using FV-OCI. The carrying value of the investment at the last reporting period was $65,900. To date, $2,970 of unrealized gains on fair value adjustments have been recorded to other comprehensive income. The original cost of the investment is therefore $62,930. On June 15, when the market value of the investment is $66,340, Blue Spruce sold the investment. Using the three-step approach, record the sale and reclassification (recycling) entry at June 15, assuming the investment an equity investment and the company reclassifies gains or losses to Retained Earnings on disposition of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry Entry" for the account titles and enter o for the amounts.) is "No Account Titles and Explanation Debit Credit (To adjust to fair value at date of disposal) (To record disposal) (To reclassify holding gain)

Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter9: Fixed Assets And Intangible Assets
Section: Chapter Questions
Problem 9.5CP: Fixed asset turnover: three industries The following table shows the revenues and average net fixed...
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Brief Exercise 9-13
Blue Spruce Ltd. has a single investment that it accounts for using FV-OCI. The carrying value of the investment at the last reporting period was $65,900. To date, $2,970 of unrealized gains on fair value adjustments have been recorded to other comprehensive income. The
original cost of the investment is therefore $62,930. On June 15, when the market value of the investment is $66,340, Blue Spruce sold the investment. Using the three-step approach, record the sale and reclassification (recycling) entry at June 15, assuming the investment is
an equity investment and the company reclassifies gains or losses to Retained Earnings on disposition of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No
Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(To adjust to fair value at date of disposal)
(To record disposal)
(To reclassify holding gain)
Transcribed Image Text:Brief Exercise 9-13 Blue Spruce Ltd. has a single investment that it accounts for using FV-OCI. The carrying value of the investment at the last reporting period was $65,900. To date, $2,970 of unrealized gains on fair value adjustments have been recorded to other comprehensive income. The original cost of the investment is therefore $62,930. On June 15, when the market value of the investment is $66,340, Blue Spruce sold the investment. Using the three-step approach, record the sale and reclassification (recycling) entry at June 15, assuming the investment is an equity investment and the company reclassifies gains or losses to Retained Earnings on disposition of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (To adjust to fair value at date of disposal) (To record disposal) (To reclassify holding gain)
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