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BlackBerry Weights Spinning Off its Messenger Service

Spinning off in business implies a situation where a venture decides to separate one of its assets and develop an entirely new distribution and management mechanism for that particular service or product. When the operations of BlackBerry are considered a single entity, the counting mechanism will entail consolidation of revenues and expenditures for all services and goods (Wall Street Journal). On the other hand, once the business entity spines off one of its services (assets), financial returns as well as operational expenditures will be treated differently. For example, in the new business, concerned with messenger, will require sources of operational facilities, human resources, as well as financing models of its own.

Journal entries record all transactions of a business; this includes incomes and expenditures for a particular period of time. In simpler terms, journal entries allow business managers to sort transaction by categorizing it either in double or single entry methods. In a double-entry approach, a company categorized its proceeds and income into debit and credit sides. Before spinning, Blackberry journal entry entail would; retained earnings on the debit...