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
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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 at
1
$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 market
price of $48 per share less brokerage commissions of $3,876. The year-end fair
values per share were as follows: Nirmala $41, Oxana $75, and WTA $38. The chief
accountant of Blue Spruce tells you that Blue Spruce Corporation holds these
investments with the intention of selling them in order to earn short-term profits
from 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 to
record the three investments
Format
BIU
三
Transcribed Image Text: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 at 1 $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 market price of $48 per share less brokerage commissions of $3,876. The year-end fair values per share were as follows: Nirmala $41, Oxana $75, and WTA $38. The chief accountant of Blue Spruce tells you that Blue Spruce Corporation holds these investments with the intention of selling them in order to earn short-term profits from 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 to record the three investments Format BIU 三
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