Following is a list of investments owned by Martinez Ltd., as of the company's year-end, December 31, 2023: Investment HFX Corporation FDY Ltd. CTN Corporation No. Shares Cost 1.200 $7.78 2.400 7.34 4,400 6.32 Fair Value $7.24 7.10 6.92 On January 15, 2024, Martinez sold the shares in CTN Corporation for $7.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (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. List all debit entries before credit entries.]
Following is a list of investments owned by Martinez Ltd., as of the company's year-end, December 31, 2023: Investment HFX Corporation FDY Ltd. CTN Corporation No. Shares Cost 1.200 $7.78 2.400 7.34 4,400 6.32 Fair Value $7.24 7.10 6.92 On January 15, 2024, Martinez sold the shares in CTN Corporation for $7.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (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. List all debit entries before credit entries.]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Following is a list of investments owned by Martinez Ltd., as of the company's year-end, December 31, 2023:
Investment
HFX Corporation
FDY Ltd.
CTN Corporation
No.
Shares
Cost
1,200 $7.78
2,400 7.34
4,400
Fair
Value
$7.24
7.10
6.32 6.92
On January 15, 2024, Martinez sold the shares in CTN Corporation for $7.10 per share.
Prepare the journal entries required to record the sale, assuming the company uses the fair value through other
comprehensive income without recycling method. (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. List all debit entries before credit entries.)
Date Account Titles and Explanation
Jan.
15,
2024
(To record adjustment to current fair value.)
(To record the sale of shares.)
(To record reclassification adjustment (without
recycling).)
Debit
Credit
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