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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
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. | 1,600 | $40,000 | $44,800 | ||||
Luck Company | 1,250 | 37,500 | 33,750 | ||||
Wilson Company | 1,000 | 40,000 | 37,000 | ||||
Total | $117,500 | $115,550 |
On May 10, Year 2, Gruden Bancorp Inc. purchased 1,200 shares of Carroll Inc. at $29 per share plus a $100 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 | |||
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