Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair value of this portfalla on December 31, Year 1, was as follows: Name Number of Shares Total Cost Total Fair Value Griffin Inc. Luck Company Wilson Company 1,350 900 300 $10,090 $17,000 24,400 9,100 Total $50,500 On May 10, veer 2, Gruden Dancerp Ine. purchased 500 shares of Carrell Inc. at $30 per share plus a $140 brokerage commission. Provide the journal entries to record the following: 9,000 $53,330
Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair value of this portfalla on December 31, Year 1, was as follows: Name Number of Shares Total Cost Total Fair Value Griffin Inc. Luck Company Wilson Company 1,350 900 300 $10,090 $17,000 24,400 9,100 Total $50,500 On May 10, veer 2, Gruden Dancerp Ine. purchased 500 shares of Carrell Inc. at $30 per share plus a $140 brokerage commission. Provide the journal entries to record the following: 9,000 $53,330
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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M4
Transcribed Image Text:Fair Value Journal Entries, Trading Investments
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:
Name
Number of Shares
Total Cost Total Fair Value
Griffin Inc.
1,350
$10,090
$17,000
Luck Company
800
26,240
24,400
Wilson Company
300
9,000
9,180
Total
$53,330
$50,580
On May 10, Year 2, Gruden Bancorp Inc. purchased 500 shares of Carroll Inc., at $30 per share plus a $140 brokerage commission.
Provide the journal entries to record the following:
a. The adjustment of the trading security portfolio to fair value on December 31, Year 1.
Year 1, Dec. 31
b. The May 10, Year 2, purchase of Carroll Inc. stock.
Year 2, May 10
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