Question
On December 31, 2016, Bridgeport Ltd. reported the following statement of financial position. BRIDGEPORT LTD. Statement of Financial Position As at December 31, 2016 Assets
On December 31, 2016, Bridgeport Ltd. reported the following statement of financial position.
BRIDGEPORT LTD. Statement of Financial Position As at December 31, 2016 | ||||||
Assets | Equity | |||||
FV-OCI investments | $251,000 | Contributed capital | $265,370 | |||
Cash | 43,120 | Accumulated other comprehensive income | 28,750 | |||
Total | $294,120 | Total | $294,120 |
The accumulated other comprehensive income was related only to the companys non-traded equity investments. Some of these were sold in 2017 for cash, resulting in a gain of $28,750. The fair value of Bridgeport Ltd.s investments at December 31, 2017, was $180,800 and their cost was $137,000. No FV-OCI investments were purchased during 2017. Although Bridgeport is a private company, it applies IFRS and does not recycle OCI gains and losses to net income when realized. Bridgeport Ltd. received dividend income of $4,650 (cash) during 2017 and realized a gain of $28,750 on the purchase and sale of FV-NI investments. Assume all transactions during the year were for cash. Ignoring income taxes and assuming that all transactions during the year were for cash:
Prepare the journal entry related to the sale of the FV-OCI investments in 2017
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