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 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo.June 2 Sells 40 shares of its investment in Higo stock ($1,160 cost) at $32 per share.Dec. 31 The closing market price (fair value) of the Higo stock is $27 per share.Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo.Note: Enter debits before credits. DateGeneral JournalDebitCreditMay 09 Sells 40 shares of its investment in Higo stock at $32 per share.Note: Enter debits before credits. DateGeneral JournalDebitCreditJun 02 The closing market price (fair value) of the Higo stock is $27 per share. Record the year-end adjustment to fair value, if any.Note: Enter debits before credits. DateGeneral JournalDebitCreditDec 31

Journal entry refers to the recording of business transactions initially into books of accounts.…

Answered: Prepare Tiker Company's journal entries…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 17P

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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 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo.
June	2	Sells 40 shares of its investment in Higo stock ($1,160 cost) at $32 per share.
Dec.	31	The closing market price (fair value) of the Higo stock is $27 per share.

Purchases 240 shares of Higo stock as a short-term investment at a cost of $29 per share. Tiker has insignificant influence over Higo.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
May 09

Sells 40 shares of its investment in Higo stock at $32 per share.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jun 02

The closing market price (fair value) of the Higo stock is $27 per share. Record the year-end adjustment to fair value, if any.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31

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