Fair Value Through Other Comprehensive Income Investments - Entries
Lekan

Fair value through other comprehensive income investments - entries
Lekan Corp provided you with the following information about its investment in Adoweye Inc. shares purchased May 2020, and accounted for using the FV-OCI method
$$\begin{array} { l l } \text { Cost } & \$ \mathbf { 2 9 , 5 0 0 } \\\text { Fair value, December 31, 2020 } & \mathbf { \$ 3 0 , 9 0 0 } \\\text { Fair value, December 31, 2021 } & \mathbf { \$ 2 3 , 8 0 0 } \\\text { Fair value, December 31, 2022 } & \mathbf { \$ 2 6 , 9 0 0 }\end{array}$$ Instructions
a) Prepare the adjusting journal entries needed on December 31, 2020, 2021, and 2022.
b) Determine the balance in the accumulated other comprehensive income on the statement of financial position on each of December 31, 2020, 2021, and 2022.
c) Assume Lekan sold its investment in Adoweye Inc. on February 13, 2023, for $ 28,100. Prepare the journal entry(ies) needed on this date if (1) the FV-OCI method required recycling, and (2) the FV-OCI method did not require recycling.