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62. Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair value of this portfolio on December 31, Year
62. 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:
1 | Name | Number of Shares | Total Cost | Total Fair Value |
2 | Griffin Inc. | 1,480.00 | $29,600.00 | $32,560.00 |
3 | Luck Company | 1,230.00 | 31,980.00 | 25,830.00 |
4 | Wilson Company | 870.00 | 31,320.00 | 28,710.00 |
5 | Total |
| $92,900.00 | $87,100.00 |
On May 10, Year 2, Gruden Bancorp Inc. purchased 980 shares of Carroll Inc. at $26 per share plus a $120 brokerage commission.
Required:
A. | Provide the journal entry to record the adjustment of the trading security portfolio to fair value on December 31, Year 1.* |
B. | Provide the journal entry to record the May 10, Year 2, purchase of Carroll Inc. stock.* |
*Refer to the Chart of Accounts for exact wording of account titles. |
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ACCOUNTING EQUATION
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