Question
On December 31, 2020, Hubble Corp. has the following securities in its portfolio of temporary investments: Cost Market 5,000 common shares of Orion Corp.$ 80,000$
On December 31, 2020, Hubble Corp. has the following securities in its portfolio of temporary investments:
CostMarket
5,000 common shares of Orion Corp.$ 80,000$ 69,500
10,000 common shares of Rigel Ltd.91,00092,500
$171,000$162,000
All of the securities had been purchased in 2018. In 2021, Hubble completed the following securities transaction:
Apr 1Bought 300 common shares of Aries Corp. @ $50 each, plus fees of $550.
On December 31, 2021, Hubble's portfolio of trading equity securities appeared as follows:
Cost/ Carrying ValueMarket
5,000 common shares of Orion Corp.$ 69,500$ 78,000
10,000 common shares of Rigel Ltd.92,50099,250
300 common shares of Aries Corp.15,55012,750
$177,550$190,000
Assuming Hubble uses the FV-NI model, prepare the general journal entries for:
a)the 2020 year-end adjusting entry,
b)the purchase of the Aries Corp. shares.
c)the 2021 year-end adjusting entry.
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