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.		1,250		$16,750		$15,750
Luck Company		800		26,240		24,400
Wilson Company		250		7,250		7,400
	Total			$50,240		$47,550

On May 10, Year 2, Gruden Bancorp Inc. purchased 550 shares of Carroll Inc., at $29 per share plus a $150 brokerage commission.

Provide the journal entries to record the following:

Question Content Area

a. The adjustment of the trading security portfolio to fair value on December 31, Year 1.

Year 1, Dec. 31	CashInterest IncomeUnrealized Gain (Loss) on Trading InvestmentsValuation Allowance for Trading Investments	- Select -
	CashInterest IncomeUnrealized Gain (Loss) on Trading InvestmentsValuation Allowance for Trading Investments		- Select -

Question Content Area

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

Year 2, May 10	Accounts ReceivableCashDividend ReceivableDividend RevenueInvestments-Carroll Inc.	- Select -
	Accounts ReceivableCashDividend ReceivableDividend RevenueInvestments-Carroll Inc		- Select -