Hiker Company completes the following transactions during the current year.

May 9 Purchases 200 shares of Higo stock as a short-term investment in available-for-sale securities at a cost of $25 per share plus $150 in broker fees.

June 2 Sells 100 shares of its investment in Higo stock at $28 per share. The broker’s commission on this sale is $90.

Dec. 31 The closing market price of the Higo stock is $23 per share.

Prepare the May 9 and June 2 journal entries and the December 31 adjusting entry. This is the first and only time the company purchased such securities.

AppendixLO1