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Blue Spruce Corporation made the following purchases of investments during 2023, the first year in which Blue Spruce invested in equity securities: 1. On January 15, it purchased 12,240 shares of Nirmala Corp's common shares at $45.60 per share plus commission of $2,694. 2. 3. On April 1, it purchased 6,800 shares of Oxana Corp.'s common shares at $71 per share plus commission of $4,583. On September 10, it purchased 9,520 shares of WTA Corp.'s preferred shares at $36.60 per share plus commission of $3,958. On May 20, 2023, 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 holds these investments with the intention of selling them to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Blue Spruce follows IFRS. (a) Prepare the journal entries to record the three investments. (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. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Ci

Blue Spruce Corporation made the following purchases of investments during 2023, the first year in which Blue Spruce invested in equity securities: 1. On January 15, it purchased 12,240 shares of Nirmala Corp's common shares at $45.60 per share plus commission of $2,694. 2. 3. On April 1, it purchased 6,800 shares of Oxana Corp.'s common shares at $71 per share plus commission of $4,583. On September 10, it purchased 9,520 shares of WTA Corp.'s preferred shares at $36.60 per share plus commission of $3,958. On May 20, 2023, 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 holds these investments with the intention of selling them to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Blue Spruce follows IFRS. (a) Prepare the journal entries to record the three investments. (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. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Ci

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 28E
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Blue Spruce Corporation made the following purchases of investments during 2023, the first year in which Blue Spruce invested in equity securities: 1. On January 15, it purchased 12,240 shares of Nirmala Corp's common shares at $45.60 per share plus commission of $2,694. 2. 3. On April 1, it purchased 6,800 shares of Oxana Corp.'s common shares at $71 per share plus commission of $4,583. On September 10, it purchased 9,520 shares of WTA Corp.'s preferred shares at $36.60 per share plus commission of $3,958. On May 20, 2023, 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 holds these investments with the intention of selling them to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Blue Spruce follows IFRS. (a) Prepare the journal entries to record the three investments. (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. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Ci
Transcribed Image Text:Blue Spruce Corporation made the following purchases of investments during 2023, the first year in which Blue Spruce invested in equity securities: 1. On January 15, it purchased 12,240 shares of Nirmala Corp's common shares at $45.60 per share plus commission of $2,694. 2. 3. On April 1, it purchased 6,800 shares of Oxana Corp.'s common shares at $71 per share plus commission of $4,583. On September 10, it purchased 9,520 shares of WTA Corp.'s preferred shares at $36.60 per share plus commission of $3,958. On May 20, 2023, 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 holds these investments with the intention of selling them to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Blue Spruce follows IFRS. (a) Prepare the journal entries to record the three investments. (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. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Ci
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