Gruden Bancorp Inc. purchased a portfolio of trading securities during 20Y3, its first year of operations. The cost and fair value of this portfolio on December 31, 20Y3, are as follows:

1	Issuing Company	Cost	Fair Value
2	Griffin Inc.	$29,000.00	$31,900.00
3	Luck Company	35,100.00	28,600.00
4	Wilson Company	30,960.00	26,660.00
5	Total	$95,060.00	$87,160.00

On May 10, 20Y4, Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $23,420.

Required:

Journalize the entries to record the following:

a.	The adjusting entry for the portfolio of trading securities on December 31, 20Y3.*
b.	The May 10, 20Y4, purchase of Carroll Inc. securities.*
c.	The adjusting entry for the portfolio of trading securities on December 31, 20Y4. Assume that except for the purchase of Carroll Inc. securities there were no other transactions involving trading securities in 20Y4. In addition, assume that the fair value of the portfolio of trading securities on December 31, 20Y4, is $135,180.*
d.	What amount should be reported for trading investments on the December 31, 20Y4, balance sheet?
	*Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

CHART OF ACCOUNTS

Gruden Bancorp Inc.

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
121	Allowance for Doubtful Accounts
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
161	Trading Investments-Carroll Inc.
165	Valuation Allowance for Trading Investments
166	Valuation Allowance for Available-for-Sale Investments
181	Land
191	Store Equipment
192	Accumulated Depreciation-Store Equipment
193	Office Equipment
194	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
231	Interest Payable
241	Salaries Payable
251	Sales Tax Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Treasury Stock
332	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
350	Unrealized Gain on Available-for-Sale Investments
351	Cash Dividends
352	Stock Dividends

	REVENUE
410	Sales
411	Interest Revenue
412	Dividend Revenue
421	Income of Carroll Inc.
431	Gain on Sale of Investments
641	Unrealized Gain on Trading Investments
642	Unrealized Loss on Trading Investments

	EXPENSES
511	Cost of Merchandise Sold
512	Bad Debt Expense
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Repairs Expense
534	Selling Expenses
535	Rent Expense
536	Insurance Expense
537	Office Supplies Expense
538	Store Supplies Expense
561	Depreciation Expense-Store Equipment
562	Depreciation Expense-Office Equipment
590	Miscellaneous Expense
710	Interest Expense
721	Loss of Carroll Inc.
731	Loss on Sale of Investments

d. What amount should be reported for trading investments on the December 31, 20Y4, balance sheet?