Instructions Last Unguaranteed Financial Inc purchased the following trading securities during Year 1, its first year of operations Name Number of Shares Cost 5.000 $150,000 Arden Enterprises Inc French Broad Industries Inc Pisgah Construction Inc 2,750 66.000 1,600 104,000 Total $320,000 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 $34 Arden Enterprises Inc French Broad Industries Inc 26 Dinas Canet. Instructions Pisgan construction inc T,SU! 104,000 Total $320,000 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 $34 Arden Enterprises Inc French Broad Industnes Inc Pisgah Construction Inc. 26 60 Required: A Provide the journal entry to adjust the trading security portfolio to tair value on December 31, Year 1. Refer to the Chart of Accounts for exact wording of account tities B. Assume 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? hart of Accounts CHART OF ACCOUNTS Last Unguaranteed Financial Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 611 Interest Revenue 612 Dividend Revenue 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments 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 EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 515 Credit Card Expense Chart of Accounts 146 Store Supplies 512 Bad Debt Expense 151 Prepaid Insurance 161 Trading Investments 162 Available for Sale Investments 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 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 LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries Payable 731 Loss on Sale of Investments Chart of Accounts 241 Salaries Payable 251 Sales Tax Payable 731 Loss on Sale of Investments 741 Unrealized Loss on Trading Investments 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 (Loss) on Available-for-Sale Investments 351 Cash Dividends 352 Stock Dividends 390 Income Summary
