Journal entries for trading investments 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: Issuing Company Cost Fair Value Griffin Inc. $40,000 $44,800 Luck Company 37,500 33,750 Wilson Company 40,000 37,000 Total $117,500 $115,550 On May 10, 20Y4, Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $34,900. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. Question Content Area 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 $175,000. CENGAGE counts the answer given by the expert as INCORRECT. Please explain WHY $22,600 is NOT the correct answer.

On May 10, 20V4, Gruden Bsncorp Ine. purchssed trad ng securties of Carroll Inc. for $34,900. journs ize the entries to record the following: If an amount box doss not require an entry, lesve it blank. a. The sdjuating entry for the portholo of trad na securties on December 31, 2013. 2J3, Dec. 31 U T Onosk Wy Wak a. The gain or loss is the d "lerence between the portfolo cost and its to ir value. The olsetting account for the gain or loss entry is the Val ustion Allowance for Trad ing investments. b. The May 10, 2014, purchsse of Carroll Ine. securties. 20Y4,a,10 Towsk Wak b. Incresse the Imvestments and decresse Cash for the purchsse price (Number of Shares x Per share smount) plus brokerspe commission. d. What amount should be reported for trod ing livestments on the December 31, 2014, bolance sheet