Hiker Company completes the following transactions during the current year. May 9 Purchases 200 shares of Higo
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Hiker Company completes the following transactions during the current year.
May 9 Purchases 200 shares of Higo stock as a short- term investment in available-for-sale securities at a cost of $25 per share plus $150 in broker fees.
June 2 Sells 100 shares of its investment in Higo stock at $ 28 per share. The broker’s commission on this sale is $90.
Dec. 31 The closing market price (fair value) of the Higo stock is $ 23 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.
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...
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May 9 ShortTerm InvestmentsAFS Higo 5150 Cash 5150 Purchased 20...View the full answer
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Related Book For 
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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