Blue Spruce Corporation made the following purchases of investments during 2020,the first year in which Blue Spruce invested in equity securities:On January 15, purchased 12,240 shares of Nirmala Corp.'s common shares at1$45.60 per share plus commission of $2,694.On April 1, purchased 6,800 shares of Oxana Corp's common shares at$71 per share plus commission of $4,583.On September 10, purchased 9,520 shares of WwTA Corp.'s preferred shares at$36.60 per share plus commission of $3,958.On May 20, 2020, Blue Spruce sold 4,080 of the Nirmala common shares at a marketprice of $48 per share less brokerage commissions of $3,876. The year-end fairvalues per share were as follows: Nirmala $41, Oxana $75, and WTA $38. The chiefaccountant of Blue Spruce tells you that Blue Spruce Corporation holds theseinvestments with the intention of selling them in order to earn short-term profitsfrom appreciation in their prices and accounts for them using the FV-NI model.Assume that Blue Spruce Corporation follows IFRS 9. Prepare the journal entries torecord the three investmentsFormatBIU三

Investments-: An investment is an amount or acquired to develop earnings or appreciation.…

Answered: Blue Spruce Corporation made the…

Blue Spruce Corporation made the following purchases of investments during 2020, the first year in which Blue Spruce invested in equity securities:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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