Exercise 9-16 At December 31, 2020, the equity investments of Blue Spruce Inc. that were accounted for using the FV-OCI model without recycling were as follows: Investment Ahn Inc. Burnham Corp. Chi Ltd. Total Cost and Carrying Amount $175,300 121,100 72,600 $369,000 Unrealized Fair Value Gain (Loss) $151,500 $(23,800) 141,100 20,000 76,100 3,500 $368 700 $(300) Because of a change in relationship with Ahn Inc., Blue Spruce Inc. sold its investment in Ahn for $153,200 on January 20, 2021. No other investments were acquired or sold during 2021; however, a dividend of $1,300 was received from Burnham Corp. in June. At December 31, 2021, the fair values of Burnham and Chi shares were $155,100 and $72,300, respectively. Prepare the entry to adjust the portfolio of investments to fair value at December 31, 2020. (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.) Debit Credit Date Account Titles and Explanation Dec 31, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the presentation of all investment-related accounts on the statement of financial position at December 31, 2020. Assume that the balance of AOCI at December 31, 2019 is zero. (Enter negative amounts using either a negative sign preceding the number e.g. 2,945 or parentheses e.g. (2,945).) Blue Spruce Inc. Statement of Financial Position 1 SHOW LIST OF ACCOUNTS LINK TO TEXT Indicate what accounts and amounts would be reported on the statement of comprehensive income for the year ended December 31, 2020, and where each would be reported. (Enter negative amounts using either a negative sign preceding the number e.g. 2,945 or parentheses e.g. (2,945).) Blue Spruce Inc. Statement of Comprehensive Income $XXX $XXX SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entries for the 2021 sale of the investment in Ahn Inc., including reclassifying holding gains or losses to retained earnings and for the dividend received from Burnham Corp. (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 Jan. 20, 2021 Debit Credit (To adjust to fair value at date of disposal) Jan. 20, 2021 (To record disposal) Jan. 20, 2021 (To reclassify holding loss) June 2021 SHOW LIST OF ACCOUNTS Prepare the journal entry required at December 31, 2021, to adjust the investments to fair value. (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.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT
