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.

May		9		Purchases 320 shares of Higo stock as a short-term investment at a cost of $37 per share. Tiker has insignificant influence over Higo.
June		2		Sells 80 shares of its investment in Higo stock ($2,960 cost) at $40 per share.
Dec.		31		The closing market price (fair value) of the Higo stock is $35 per share.

Journal entry worksheet

• Purchases 320 shares of Higo stock as a short-term investment at a cost of $37 per share. Tiker has insignificant influence over Higo.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
May 09

Journal entry worksheet

• Sells 80 shares of its investment in Higo stock at $40 per share.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jun 02

Journal entry worksheet

• The closing market price (fair value) of the Higo stock is $35 per share. Record the year-end adjustment to fair value, if any.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31