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)

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 ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following data pertain to Sunlight Corp., whose management is planning to purchase an automated tanning equipment. Economic life of equipment – 8 years. Disposal value after 8 years – nil. Estimated net annual cash inflows for each of the 8 years – P81,000. Time-adjusted internal rate of return – 14% Cost of capital of Sunlight Corp – 16% The table of present values of P1 received annually for 8 years has these factors: at 14% = 4.639, at 16% = 4.344 Depreciation is approximately P46,970 annually. Find the required increase in annual cash inflows in order to have the time-adjusted rate of return approximately equal the cost of capital.
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ADIB has signed a Musharaka contract with ADIA ADIA provided 27 9% capital contribution in the project and agreed to the same profit-sharing percentage (279%). In addition, ADIB appointed ADIA as a professional manager on a fee-based arrangement to manage the project. Suppose that at the end of the first year project generates a loss of AED 18,786. What will be the loss share of ADIA?