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 380 shares of Higo stock as a short-tern investment at a cost of $43 per share. Tiker has insignificant influence over Higo. June 2 Sells 148 shares of its investment in Higo stock ($6,828 cost) at $46 per share. December 31 The closing market price (fair value) of the Higo stock is $41 per share. Answer is not complete. No Date General Journal Debit Credit May 00 Stock investments 16.340 Cash 16,340 2 June 02 Cash 8.440 O Gain on sale of stock investments Stock investments 1,748 O 3 December 31 Unrealized loss - Income 1.000 O Fair value adjustment - Stock 1.900

Gain on sale of stock investment = Cash - Stock Investments Fair value adjustment is the difference…

Answered: Prepare Tiker Company's journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments…

FINANCIAL ACCOUNTING

10th Edition

ISBN: 9781259964947

Author: Libby

Publisher: MCG

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Question

please show all calculation .

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 380 shares of Higo stock as a short-term investment at a cost of $43 per share. Tiker has insignificant
June 2 Sells 148 shares of its investment in Higo stock ($6,820 cost) at $46 per share.
December 31 The closing market price (fair value) of the Higo stock is $41 per share.
influence over Higo.
Answer is not complete.
No
Date
General Journal
Debit
Credit
1
May 00
Stock investments
18.340
Cash
18,340
2
June 02
Cash
8.440
Gain on sale of stock investments
Stock investments
1,748 8
3
December 31
Unrealized loss - Income
1.000 3
Fair value adjustment - Stock
1.900 8

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