Fair value adjustment for trading investmentsGruden Bancorp Inc. purchased a portfolio of trading securities during 20Y3, its first year of operations. The costand fair value of this portfolio on December 31, 20Y3, are as follows:Issuing CompanyGriffin Inc.Luck CompanyWilson CompanyTotals$40,00037,50040,000$117,500On May 10, 20Y4, Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $35,500.20Y3 Dec. 31CostFair Valuea. Journalize the adjusting entry for the portfolio of trading securities on December 31, 20Y3. If an amount boxdoes not require an entry, leave it blank.20Y4 May 10$45,00033,75037,500$116,250b. Journalize the May 10, 20Y4, purchase of Carroll Inc. securities. If an amount box does not require an entry,leave it blank.20Y4 Dec. 31c. Journalize the adjusting entry for the portfolio of trading securities on December 31, 20Y4. Assume that exceptfor the purchase of Carroll Inc. securities there were no other transactions involving trading securities in 20Y4. Inaddition, assume that the fair value of the portfolio of trading securities on December 31, 20Y4, is $170,000. If anamount box does not require an entry, leave it blank.d. What amount should be reported for trading investments on the December 31, 20Y4, balance sheet?

Journal entries are used to record and initially categorise commercial transactions into books of…

Gruden Bancorp Inc. purchased a portfolio of trading securities during 20Y3, its first year of operations. The co and fair value of this portfolio on December 31, 20Y3, are as follows: Issuing Company Fair Value Griffin Inc. Luck Company Wilson Company Totals Cost 20Y3 Dec. 31 $40,000 37,500 40,000 $117,500 On May 10, 20Y4, Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $35,500. $45,000 33,750 37,500 $116,250 a. Journalize the adjusting entry for the portfolio of trading securities on December 31, 20Y3. If an amount bo does not require an entry, leave it blank. 2014 May 10 b. Journalize the May 10, 20Y4, purchase of Carroll Inc. securities. If an amount box does not require an entry leave it blank.

Gruden Bancorp Inc. purchased a portfolio of trading securities during 20Y3, its first year of operations. The co and fair value of this portfolio on December 31, 20Y3, are as follows: Issuing Company Fair Value Griffin Inc. Luck Company Wilson Company Totals Cost 20Y3 Dec. 31 $40,000 37,500 40,000 $117,500 On May 10, 20Y4, Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $35,500. $45,000 33,750 37,500 $116,250 a. Journalize the adjusting entry for the portfolio of trading securities on December 31, 20Y3. If an amount bo does not require an entry, leave it blank. 2014 May 10 b. Journalize the May 10, 20Y4, purchase of Carroll Inc. securities. If an amount box does not require an entry leave it blank.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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