Prepare Tiker Company's journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments portfolio. This is the first and only time the company purchased such securities. May 9 Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo. June 2 Sells 40 shares of its investment in Higo stock ($1,160 cost) at $32 per share. Dec. 31 The closing market price (fair value) of the Higo stock is $27 per share.
Prepare Tiker Company's journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments portfolio. This is the first and only time the company purchased such securities. May 9 Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo. June 2 Sells 40 shares of its investment in Higo stock ($1,160 cost) at $32 per share. Dec. 31 The closing market price (fair value) of the Higo stock is $27 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare Tiker Company's
| May | 9 | Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo. | ||
| June | 2 | Sells 40 shares of its investment in Higo stock ($1,160 cost) at $32 per share. | ||
| Dec. | 31 | The closing market price (fair value) of the Higo stock is $27 per share. |
- Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo.
Note: Enter debits before credits.
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- Sells 40 shares of its investment in Higo stock at $32 per share.
Note: Enter debits before credits.
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- The closing market price (fair value) of the Higo stock is $27 per share. Record the year-end adjustment to fair value, if any.
Note: Enter debits before credits.
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