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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. | 1,300 | $17,420 | $16,370 | ||||
Luck Company | 700 | 22,960 | 21,350 | ||||
Wilson Company | 200 | 6,400 | 6,530 | ||||
Total | $46,780 | $44,250 |
On May 10, Year 2, Gruden Bancorp Inc. purchased 600 shares of Carroll Inc., at $32 per share plus a $110 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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