Fair Value jourrnal entries, trading inestments

Jets Bancorps Inc. purchased a portfolio of trading securities during 2014. The cost and fair value of this portfolio on Dec. 31, 2014 was as follows:

Name # of shares Total Cost Total Fair Value

Dolphins Inc. 1,400 $28,000 $30,800

Marino Co. 1,200 30,000 27,600

Namath Co. 800 28,000 26,400

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$86,000 $84,800

On May 10, 2015, Jets Bancorp Inc. purchased 1,000 shares of Giants Inc. at 24 per share plus $150 brokerage fee. Provide the journal entries to record the following:

a. The adjustment of the trading security portfolio to fair value on Dec. 31, 2014.

b. The May 10, 2015, purchase of Giants Inc. stock.

Fair value journal entries, trading investments

Last Unguaranteed Financial Inc. purchased the following trading securities during 2014, its first year of operations:

Name Number of Shares Cost

Arden Enterprises Inc. 5,000 $150,000

French Broad Industries Inc. 2,750 66,000

Pisgah Construction Inc. 1,600 104,000

Total $320,000

The market price per share for the trading security portfolio on Dec. 31, 2014, was as follows:

Market price per share,

Dec. 31, 2014

Arden Enterprises Inc. $ 34

French Broad Industries Inc. $ 26

Pisgah Construction Inc. $ 60

a. Provide the journal entry to adjust the trading security portfolio to fair value on Dec. 31, 2014.

b. Assume the market prices of the portfolio were the same on Dec. 31, 2015, as they were on Dec. 31, 2014. What would be the journal entry to adjust the portfolio to fair value?