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.		1,200		$16,080		$15,120
Luck Company		750		24,600		22,880
Wilson Company		350		11,200		11,420
	Total			$51,880		$49,420

On May 10, Year 2, Gruden Bancorp Inc. purchased 500 shares of Carroll Inc., at $32 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	Unrealized Gain (Loss) on Trading Investments	fill in the blank ad400807afdbfa2_2
	Valuation Allowance for Trading Investments		fill in the blank ad400807afdbfa2_4

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

Year 2, May 10	Investments-Carroll Inc.	fill in the blank c5a87ff7e00ffec_2
	Cash		fill in the blank c5a87ff7e00ffec_4