Question
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
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.
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