Question
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
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 CompanyCostFair ValueGriffin Inc.$40,000 $44,800 Luck Company37,500 33,750 Wilson Company40,000 37,000 Total$117,500 $115,550On 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.
20Y3, Dec. 31Cash, Investments-Carroll, Inc., Unrealized Gain on Trading Investments, Unrealized Loss on Trading InvestmentsValuation Allowance for Trading Investments CashInvestments-Carroll, Inc., Unrealized Gain on Trading Investments, Unrealized Loss on Trading Investments, Valuation Allowance for Trading Investments- Select -- Select -Question Content Area
b. The May 10, 20Y4, purchase of Carroll Inc. securities.
20Y4, May 10Cash, Dividend Revenue, Interest Income, Interest Receivable, Trading Investments-Carroll Inc. Cash, Dividend Revenue, Interest Income, Interest Receivable, Trading Investments-Carroll Inc.Question Content Area
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.
20Y4, Dec. 31CashInvestments-Carroll, Inc., Unrealized Gain on Trading Investments, Unrealized Loss on Trading Investments, Valuation Allowance for Trading Investments- Select -- Select - CashInvestments-Carroll, Inc.Unrealized Gain on Trading Investments, Unrealized Loss on Trading Investments, Valuation Allowance for Trading Investments- Select -- Select -Question Content Area
d. What amount should be reported for trading investments on the December 31, 20Y4, balance sheet?
$fill in the blank
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