Accounting Questions 6

Please refer to the list of accounts below to Answer Question 6 (split into 2 parts)

List of Accounts

• Accumulated Other Comprehensive Income
• Allowance for Investment Impairment
• Bond Investment at Amortized Cost
• Cash
• Dividends Receivable
• Dividend Revenue
• FV-NI Investments
• FV-OCI Investments
• Gain on Disposal of Investments in Associate
• Gain on Disposal of Investments - Cost/Amortized Cost
• Gain on Disposal of Investments - FV-NI
• Gain on Disposal of Investments - FV-OCI
• Gain or Loss in Value of Investment Property
• GST Receivable
• Interest Expense
• Interest Income
• Interest Payable
• Interest Receivable
• Investment in Associate
• Investment Income or Loss
• Loss on Discontinued Operations
• Loss on Disposal of Investments - Cost/Amortized Cost
• Loss on Disposal of Investments - FV-NI
• Loss on Disposal of Investments - FV-OCI
• Loss on Impairment
• No Entry
• Note Investment at Amortized Cost
• Other Investments
• Recovery of Loss from Impairment
• Retained Earnings
• Unrealized Gain or Loss
• Unrealized Gain or Loss - OCI

Part 1

Bridgeport Corporation purchased 500 common shares of Sigma Inc. for trading purposes for $17,000 on September 8 and accounted for the investment under ASPE at FV-NI. In December, Sigma declared and paid a cash dividend of $1.69 per share. At year and, December 21, Sigmashares were selling for $35.90 per share. In late January, Bridgeport sold the Sigma shares for $35.36 per share. Prepare Bridgeport Corporation's journal entry to record the purchase of the investment. (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.) Date Account Titles and Explanation Debit Credit September Prepare Bridgeport Corporation's journal entry to record the dividends received. (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.) Date Account Titles and Explanation Debit Credit December 31Prepare Bridgeport Corporation's journal entry to record the fair value adjustment at December 21. (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.) Date Account Titles and Explanation Debit Credit December 31 -Textbook and Media List of Accounts Prepare Bridgeport Corporation's journal entry to record the January sale of the investment. (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.) Date Account Titles and Explanation Debit Credit January 31