eBook Calculator Fair Value Journal Entries, Available for Sale Investments Hurricane Inc. purchased a portfolio of available for sale securities in Year 1, its first year of operations. The cost and fair value of this portfolio on December 31, Year 1, was as follows: Name Number of Shares Total Cost Total Fair Value Tornado Inc. 1,450 $19,430 $21,570 850 Tsunami Corp. 27,880 30,390 400 Typhoon Corp. 11,780 12,400 $59,710 Total $63,740 On June 12, Year 2, Hurricane purchased 500 shares of Rogue Wave Inc. at $31 per share plus a $120 brokerage commission a. Provide the journal entries to record the following: 1. The adjustment of the available-for-sale security portfolio to fair value on December 31, Year 1. 2. The June 12, Year 2, purchase of Rogue Wave Inc. stock. Year 1, Dec. 31 Year 2, June 12 a. Provide the journal entries to record the following: 1. The adjustment of the available-for-sale security portfolio to fair value on December 31, Year 1. 2. The June 12, Year 2, purchase of Rogue Wave Inc. stock. Year 1, Dec. 31 Year 2, June 12 b. How are unrealized gains and losses treated differently for available-for-sale securities than for trading securities? Unrealized gains and losses for available-for-sale securities reported as a credit (positive) or debit (negative) balance in the section. As a result, the changes in fair value are not reflected on the ', as is the case with trading securities