8.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.

May9Purchases 430 shares of Higo stock as a short-term investment at a cost of $48 per share. Tiker has insignificant influence over Higo.

June2Sells 190 shares of its investment in Higo stock ($9,120 cost) at $51 per share.

Dec.31The closing market price (fair value) of the Higo stock is $46 per share.

9.On May 20, Montero Co. paid $282,000 to acquire 140 shares (5%) of ORD Corp. as a long-term investment. On August 5, Montero sold one-tenth of the ORD shares for $29,000.

1.Prepare entries to record both the acquisition and the sale of these shares.

2.Should this stock investment be reported at fair value or at cost on the balance sheet?

10.Rowan Co. purchases 300 common shares (40%) of JBI Corp. as a long-term investment for $520,000 cash on July 1. JBI Corp. paid $6,500 in total cash dividends on November 1 and reported net income of $130,000 for the year.

(1) - (3)Prepare Rowan's entries to record the purchase of JBI shares, the receipt of its share of JBI dividends and the December 31 year-end adjustment for its share of JBI net income.