Fair value adjustment for trading investments

Gruden Bancorp Inc. purchased a portfolio of trading securities during $20$Y$3,$ its first year of operations. The cost and fair value of this portfolio on December $31,20$Y$3,$ are as follows:

On May $10,20$Y$4,$ Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $$35,500.$

a$.$ Journalize the adjusting entry for the portfolio of trading securities on December $31,20Y3.$ If an amount box does not require an entry, leave it blank.

$20Y3$ Dec. $31$

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a$.$ Calculate the difference between cost and fair market value. Unrealized gains increase cost basis. Unrealized losses decrease cost basis.

b$.$ Journalize the May $10,20$Y$4,$ purchase of Carroll Inc. securities$.$ If an amount box does not require an entry, leave it blank.

$20Y4$ May $10$

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b$.$ Record trading investments at the purchase price.

require an entry, leave it blank.

$20$Y$4$ Dec. $31$longmapstolongleftarrow

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