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:

Name		Number of Shares		Total Cost		Total Fair Value
Jasper, Inc.		1,100		$14,740		$16,360
Parker Corp.		800		26,240		28,600
Smithfield Corp.		300		8,700		8,270
	Total			$49,680		$53,230

On May 10, 2015, Lipscomb purchased 550 shares of Violet Inc. stock at $29 per share plus a $80 brokerage fee.

Provide the journal entries to record the following:

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

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