FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair value of this portfolio on December 31, Year 1, was as follows:
 
1
Name
Number of Shares
Total Cost
Total Fair Value
2
Griffin Inc.
1,450.00
$29,000.00
$31,900.00
3
Luck Company
1,300.00
35,100.00
28,600.00
4
Wilson Company
860.00
30,960.00
26,660.00
5
Total
 
$95,060.00
$87,160.00
 
 
 
On May 10, Year 2, Gruden Bancorp Inc. purchased 930 shares of Carroll Inc. at $25 per share plus a $170 brokerage commission.
Required:
A.  Provide the journal entry to record the adjustment of the trading security portfolio to fair value on December 31, Year 1.*
B.  Provide the journal entry to record the May 10, Year 2, purchase of Carroll Inc. stock.*
  *Refer to the Chart of Accounts for exact wording of account titles.
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