Fair Value Journal Entries, Trading Investments

Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. 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
Griffin Inc.		1,250		$16,750		$15,750
Luck Company		750		24,600		22,880
Wilson Company		200		6,200		6,320
	Total			$47,550		$44,950

On May 10, Year 2, Gruden Bancorp Inc. purchased 600 shares of Carroll Inc., at $31 per share plus a $60 brokerage commission.

Provide the journal entries to record the following:

a. The adjustment of the trading security portfolio to fair value on December 31, Year 1.

Year 1, Dec. 31

b. The May 10, Year 2, purchase of Carroll Inc. stock.

Year 2, May 10