5.) Fair Value Journal Entries, Trading Investments

The investments of Charger Inc. include a single investment: 14,500 shares of Raiders Inc. common stock purchased on February 24, 20Y1, for $38 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, 20Y1, balance sheet date, the share price had increased to $42 per share.

a. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, 20Y1.

6.) Fair Value Journal Entries, Trading Investments

Jets Bancorp Inc. purchased a portfolio of trading securities during 20Y3. The cost and fair value of this portfolio on December 31, 20Y3, was as follows:

Name		Number of Shares		Total Cost		Total Fair Value
Dolphins Inc.		1,400		$28,000		$30,800
Marino Company		1,200		30,000		27,600
Namath Company		800		28,000		26,400
	Total			$86,000		$84,800

Journalize the entry to record the adjustment of the trading security portfolio to fair value on December 31, 20Y3.

7.) Fair Value Journal Entries, Available-for-Sale Investments

The investments of Steelers Inc. include a single investment: 33,100 shares of Bengals Inc. common stock purchased on September 12, 20Y7, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, 20Y7, balance sheet date, the share price declined to $11 per share.

a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, 20Y7.

20Y1 Feb. 24 - 20Y1 Dec. 31 2013 Dec. 31 2017 Sept. 12 20Y7 Dec. 31