ruden Bancorp Inc. purchased a portfolio of trading securities during $20$Y$3,$ its first year of operations. The cost and fair value of this portfolio on December $31,20$Y$3,$ are as follows:

$1$

Issuing Company

Cost

Fair Value

$2$

Griffin Inc.

$$26,200\mathrm{.}00$

$$28,820\mathrm{.}00$

$3$

Luck Company

$32,760\mathrm{.}00$

$28,980\mathrm{.}00$

$4$

Wilson Company

$30,240\mathrm{.}00$

$27,720\mathrm{.}00$

$5$

Total

$$89,200\mathrm{.}00$

$$85,520\mathrm{.}00$

On May $10,20$Y$4,$ Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $$25,655.$

Required:

Journalize the entries to record the following:

a$.$ The adjusting entry for the portfolio of trading securities on December $31,20$Y$3.*$

b$.$ The May $10,20$Y$4,$ purchase of Carroll Inc. securities$.*$

c$.$ The adjusting entry for the portfolio of trading securities on December $31,20$Y$4.$ Assume that except for the purchase of Carroll Inc. securities there were no other transactions involving trading securities in $20$Y$4.$ In addition, assume that the fair value of the portfolio of trading securities on December $31,20$Y$4,$ is $$136,175.*$

d$.$ What amount should be reported for trading investments on the December $31,20$Y$4,$ 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.