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.		1,200		$16,080		$17,850
Parker Corp.		700		22,960		25,030
Smithfield Corp.		350		10,850		10,310
	Total			$49,890		$53,190

On May 10, 2015, Lipscomb purchased 500 shares of Violet Inc. stock at $31 per share plus a $130 brokerage fee.

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Provide the journal entries to record the following:

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

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

2014 Dec. 31
2015 May 10