Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Anthony A Atkinson, Robert S Kaplan

5th Edition

136005314, 978-0136005315

More Books

Students also viewed these Accounting questions

Question

Brief the importance of span of control and its concepts.

Answered: 1 week ago

Question

What is meant by decentralisation?

Answered: 1 week ago

Question

1. What is the meaning of the information we are collecting?

Answered: 1 week ago

Question

3. How much information do we need to collect?

Answered: 1 week ago

Question

2. What types of information are we collecting?

Answered: 1 week ago