Instructions

Assuming Huber uses the FV-NI method prepare the general entries for Huber company for

• A)The 2011 year-end adjusting entry
• B)The purchase of the Wass shares
• C)The2012year-endadjustingentry

Huber Company has the following securities in its portfolio of temporary investments on Dec.31 2011:

5,000 shares of Lest Corp common (Cost)$160,000 (Market) $139,000

10,000 shares of Reap common 182,000 185,000

=$342,000 =$324,000

All of the securities had been purchased in 2011. In 2012 Huber completed the following securities transaction:

April 1 Bought 600 shares of Wass, common @ $50 plus fees of $550

The Huber company portfolio of trading equity securities appeared as follows on Dec.31 2012

5,000 shares of Lest Corp common (Cost) $160,000 (Market) $156,000

10,000 shares of Reap common 182,000 198,500

600 shares of Wass common 30,550 25,500

=$372,550 =$380,000