QS 15-8 Available-for-sale securities LO P3

Hiker Company completes the following transactions during the current year.

May		9		Purchases 340 shares of Higo stock as a short-term investment in available-for-sale securities at a cost of $39 per share plus $206 in broker fees.
June		2		Sells 170 shares of its investment in Higo stock at $42 per share. The brokers commission on this sale is $118.
Dec.		31		The closing market price (fair value) of the Higo stock is $37 per share.

Prepare the May 9 and June 2 journal entries and the December 31 adjusting entry. This is the first and only time the company purchased such securities. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1.) Purchases 340 shares of Higo stock as a short-term investment in available-for-sale securities at a cost of $39 per share plus $206 in broker fees.

2.) Sells 170 shares of its investment in Higo stock at $42 per share. The brokers commission on this sale is $118.

3.) The closing market price (fair value) of the Higo stock is $37 per share.