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The following was reported by Church Financial in its December 31, 2024, financial statements: Investments at FVTPL, December 31, 2023 Investments at FVTPL, December 31, 2024 Investment income or (loss) Additional information: 1. The investments at FVTPL are investments in equity securities held for trading purposes. Investment income or loss consists of: holding gain on the FVTPL investments of $2,300, and loss on sale of the FVTPL investments of $2,700. The carrying amount of the FVTPL investment sold was $3,600. 2. 3. (a) Your Answer What is the cash amount received on the sale of the investment? (b) Amount received on the sale of the investment $ Correct Answer (Used) Your Answer Correct Answer (Used) (c) Prepare the journal entries that were recorded by Church to record the sale of the investment and the holding gain on fair value adjustment December 31, 2024. (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 O for the amounts. List all debit entries before credit entries.) Dec. 31 Date Account Titles and Explanation Cash Investment Income or Loss Investments at FVTPL (To record sale of investment.) $9,900 13,500 (400) Investments at FVTPL Investment Income or Loss (To record fair value adjustment.) Investments purchased $ Calculate the amount of investments purchased in 2024. Account Titles V 900 Debit Debit 900 2,700 2,300 Credit Prepare the entry to record the purchase. (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 O for the amounts. List debit entry before credit entry.) Credit 3,600 2,300

The following was reported by Church Financial in its December 31, 2024, financial statements: Investments at FVTPL, December 31, 2023 Investments at FVTPL, December 31, 2024 Investment income or (loss) Additional information: 1. The investments at FVTPL are investments in equity securities held for trading purposes. Investment income or loss consists of: holding gain on the FVTPL investments of $2,300, and loss on sale of the FVTPL investments of $2,700. The carrying amount of the FVTPL investment sold was $3,600. 2. 3. (a) Your Answer What is the cash amount received on the sale of the investment? (b) Amount received on the sale of the investment $ Correct Answer (Used) Your Answer Correct Answer (Used) (c) Prepare the journal entries that were recorded by Church to record the sale of the investment and the holding gain on fair value adjustment December 31, 2024. (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 O for the amounts. List all debit entries before credit entries.) Dec. 31 Date Account Titles and Explanation Cash Investment Income or Loss Investments at FVTPL (To record sale of investment.) $9,900 13,500 (400) Investments at FVTPL Investment Income or Loss (To record fair value adjustment.) Investments purchased $ Calculate the amount of investments purchased in 2024. Account Titles V 900 Debit Debit 900 2,700 2,300 Credit Prepare the entry to record the purchase. (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 O for the amounts. List debit entry before credit entry.) Credit 3,600 2,300

FINANCIAL ACCOUNTING
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 was reported by Church Financial in its December 31, 2024, financial statements: Investments at FVTPL, December 31, 2023 Investments at FVTPL, December 31, 2024 Investment income or (loss) Additional information: 2. 1. The investments at FVTPL are investments in equity securities held for trading purposes. Investment income or loss consists of: holding gain on the FVTPL investments of $2,300, and loss on sale of the FVTPL investments of $2,700. The carrying amount of the FVTPL investment sold was $3,600. 3. (a) Your Answer (b) What is the cash amount received on the sale of the investment? Correct Answer (Used) (c) Amount received on the sale of the investment $ Dec. 31 Your Answer Correct Answer (Used) Prepare the journal entries that were recorded by Church to record the sale of the investment and the holding gain on fair value adjustment at December 31, 2024. (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 O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Cash Investment Income or Loss Investments at FVTPL (To record sale of investment.) $9,900 13.500 Investments at FVTPL Investment Income or Loss (400) (To record fair value adjustment.) Investments purchased $ Calculate the amount of investments purchased in 2024. Account Titles 900 Debit Debit 900 2,700 2,300 Credit Prepare the entry to record the purchase. (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 O for the amounts. List debit entry before credit entry.) Credit 3,600 2,300
Transcribed Image Text:The following was reported by Church Financial in its December 31, 2024, financial statements: Investments at FVTPL, December 31, 2023 Investments at FVTPL, December 31, 2024 Investment income or (loss) Additional information: 2. 1. The investments at FVTPL are investments in equity securities held for trading purposes. Investment income or loss consists of: holding gain on the FVTPL investments of $2,300, and loss on sale of the FVTPL investments of $2,700. The carrying amount of the FVTPL investment sold was $3,600. 3. (a) Your Answer (b) What is the cash amount received on the sale of the investment? Correct Answer (Used) (c) Amount received on the sale of the investment $ Dec. 31 Your Answer Correct Answer (Used) Prepare the journal entries that were recorded by Church to record the sale of the investment and the holding gain on fair value adjustment at December 31, 2024. (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 O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Cash Investment Income or Loss Investments at FVTPL (To record sale of investment.) $9,900 13.500 Investments at FVTPL Investment Income or Loss (400) (To record fair value adjustment.) Investments purchased $ Calculate the amount of investments purchased in 2024. Account Titles 900 Debit Debit 900 2,700 2,300 Credit Prepare the entry to record the purchase. (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 O for the amounts. List debit entry before credit entry.) Credit 3,600 2,300
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