On December 31, 2014, Hubble Corp. has the following securities in its portfolio of temporary investments: Cost Market 5,000 common shares of Orion Corp. $ 82,500 $ 90,500 10,000 common shares of Rigel Ltd. 90,000 84,500 $172,500 $175,000 On May 1, 2015, Hubble purchased 500 common shares of Aries Corp. @ $50.25 each plus 6.0% brokerage fee. On July 1, 2015 Hubble received dividends totalling $4,250 from their portfolio investments. On December 31, 2015, Hubble’s portfolio of trading equity securities reported the following market values: 5,000 common shares of Orion Corp. $ 71,600 10,000 common shares of Rigel Ltd. 98,500 500 common shares of Aries Corp. 27,750 $197,850 Required: Assuming Hubble uses the FV–OCI model, prepare the general journal entries for (Note that dates are required for these journal entries; explanations are not required): a) the 2014 year-end adjusting entry, b) the 2015 transactions, and c) the 2015 year-end adjusting entry.
On December 31, 2014, Hubble Corp. has the following securities in its portfolio of temporary investments:
Cost Market
5,000 common shares of Orion Corp. $ 82,500 $ 90,500
10,000 common shares of Rigel Ltd. 90,000 84,500
$172,500 $175,000
On May 1, 2015, Hubble purchased 500 common shares of Aries Corp. @ $50.25 each plus 6.0% brokerage fee. On July 1, 2015 Hubble received dividends totalling $4,250 from their portfolio investments.
On December 31, 2015, Hubble’s portfolio of trading equity securities reported the following market values:
5,000 common shares of Orion Corp. $ 71,600
10,000 common shares of Rigel Ltd. 98,500
500 common shares of Aries Corp. 27,750
$197,850
Required:
Assuming Hubble uses the FV–OCI model, prepare the general
a) the 2014 year-end
b) the 2015 transactions, and
c) the 2015 year-end adjusting entry.
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