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.		1,400		$18,760		$17,630
Luck Company		750		24,600		22,880
Wilson Company		200		6,200		6,320
	Total			$49,560		$46,830

On May 10, Year 2, Gruden Bancorp Inc. purchased 550 shares of Carroll Inc., at $31 per share plus a $140 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	Unrealized Gain (Loss) on Trading Investments
	Valuation Allowance for Trading Investments

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

Year 2 May 10	Investments-Carroll Inc.
	Cash