Fair Value Journal Entries, Available-for-Sale Investments

Lipscomb Inc. purchased a portfolio of available-for-sale securities in 2014, its first year of operations. The cost and fair value of this portfolio on December 31, 2014, was as follows:

Provide the journal entries to record the following:

1. The adjustment of the available-for-sale security portfolio to fair value on December 31, 2014.

2. The May 10, 2015, purchase of Violet Inc. stock.

Fair Value Journal Entries. Available-for-Sale Investments Lipscomb Inc. purchased a portfolio of available-for-sale securities in 201 its first year of operations. The cost and fair value of this portfolio on December 31, 2014, was as follows Number of Shares Total Cost Total Fair Value Name $17,420 1,300 $19,340 Jasper, Inc. 900 Parker Corp. 32,180 29,520 Smithfield Corp. 200 6,000 5,700 Total $52,940 $57,220 on May 10, 2015, Lipscomb purchased 600 shares of Violet Inc. stock at $30 per share plus a $150 brokerage fee