Fair Value Journal Entries, Trading Investments

Last Unguaranteed Financial Inc. purchased the following trading securities during Year 1, its first year of operations:

Name		Number of Shares		Cost
Arden Enterprises Inc.		3,500		$73,150
French Broad Industries Inc.		1,300		20,800
Pisgah Construction Inc.		800		20,000
	Total			$113,950

The market price per share for the trading security portfolio on December 31, Year 1 was as follows:

	Market Price per Share
	Dec. 31, Year 1
Arden Enterprises Inc.	$26.5
French Broad Industries Inc.	17
Pisgah Construction Inc.	23.5

48.

a. Provide the journal entry to adjust the trading security portfolio to fair value on December 31, Year 1. If no entry is required, select "No entry required" and leave the amount boxes blank. Year 1, Dec. 31 b. Assume that the market prices of the portfolio were the same on December 31, Year 2, as they were on December 31, Year 1. What would be the journal entry to adjust the portfolio to fair value? If no entry is required, select "No entry required" and leave the amount boxes blank. Year 2, Dec. 31