Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair value

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Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair value of this portfolio on December 31, Year 1, was as follows:

On May 10, 20Y4, Gruden Bancorp Inc. purchased 1,200 shares of Carroll Inc. at $29 per share plus a $100 brokerage commission.

Provide the journal entries to record the following:

a. The adjustment of the trading security portfolio to fair value on December 31, 20Y3.

b. The May 10, Year 20Y4, purchase of Carroll Inc. stock.

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Accounting

ISBN: 9781337902687

28th Edition

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

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Question Posted: Apr 13, 2021 07:01 AM

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Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair value

Question:

Issuing Company Cost Fair Value Griffin Inc. $ 40,000 $ 44,800 Luck Company Wilson Company 37,500 33,750 40,000 $117,500 37,000 Total $115,550

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