(b)Prepare the journal entries that were recorded by Church to record the sale of the investment and the holding gain on fair valueadjustment at December 31, 2024. (Credit account titles are automatically indented when the amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before creditentries.)Date Account Titles and ExplanationDec. 31(To record sale of investment.)(To record fair value adjustment.)Save for LaterVDebitCreditAttempts: 0 of 1 usedSubmit Ansv The following was reported by Church Financial in its December 31, 2024, financial statements:Investments at FVTPL, December 31, 2023Investments at FVTPL, December 31, 2024.Investment income or (loss)Additional information:1.2.3.$13,40018,300(600)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 $3,100, and loss on sale of the FVTPLinvestments of $3,700.The carrying amount of the FVTPL investment sold was $4,900.

Working: Calculation of cash received on sale of investment: Carrying…

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 Debit Credit

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 Debit Credit

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 2CP

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