Reference no: EM132571582
Question - Temporary investments - FV NI
Huber Company has the following securities in its portfolio of temporary investments on December 31, 2011:
|
|
Cost
|
Market
|
|
5,000 shares of Lest Corp., Common
|
$160,000
|
$139,000
|
|
10,000 shares of Reap, Common
|
182,000
|
185,000
|
|
|
$342,000
|
$324,000
|
All of the securities had been purchased in 2011. In 2012, Huber completed the following securities transaction:
April 1 Bought 600 shares of Wass, Common @ $50 plus fees of $550.
The Huber Company portfolio of trading equity securities appeared as follows on December 31, 2012:
|
|
Cost
|
Market
|
|
5,000 shares of Lest Corp. Common
|
$160,000
|
$156,000
|
|
10,000 shares of Reap, Common
|
182,000
|
198,500
|
|
600 shares of Wass, Common
|
30,000
|
25,500
|
|
|
$372,000
|
$380,000
|
Instructions - Assuming Huber uses the FV-NI method, prepare the general journal entries for Huber Company for:
(a) the 2011 year-end adjusting entry.
(b) the purchase of the Wass' shares.
(c) the 2012 year-end adjusting entry.