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Name Number of Shares Total Cost Total Fair Value 2 Griffin Inc. 1,200.00 $25,200.00 $26,400.00 3 Luck Company 1.280.00 32,000.00 26,880.00 4 Wilson Company 850.00 30,600.00 00.00גוה e0040 0.00

Name Number of Shares Total Cost Total Fair Value 2 Griffin Inc. 1,200.00 $25,200.00 $26,400.00 3 Luck Company 1.280.00 32,000.00 26,880.00 4 Wilson Company 850.00 30,600.00 00.00גוה e0040 0.00

FINANCIAL ACCOUNTING
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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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 2 Griffin Inc. 1,200.00 $25,200.00 $26,400.00 3 Luck Company 1,280.00 32,000.00 26,880.00 4 Wilson Company 850.00 30,600.00 27,200.00 Total $87,800.00 $80,480.00 5 On May 10, Year 2, Gruden Bancorp Inc. purchased 1,000 shares of Carroll Inc. at $25 per share plus a $125 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.
Transcribed Image Text: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 2 Griffin Inc. 1,200.00 $25,200.00 $26,400.00 3 Luck Company 1,280.00 32,000.00 26,880.00 4 Wilson Company 850.00 30,600.00 27,200.00 Total $87,800.00 $80,480.00 5 On May 10, Year 2, Gruden Bancorp Inc. purchased 1,000 shares of Carroll Inc. at $25 per share plus a $125 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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