Answered: Name Number of Shares Total Cost Total…

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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Question

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:

Please see the attachment for details:

On May 10, Year 2, Gruden Bancorp Inc. purchased 1,200 shares of Carroll Inc. at $29 per share plus a $100 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.
b. The May 10, Year 2, purchase of Carroll Inc. stock.

Name
Number of Shares
Total Cost
Total Fair Value
$ 44,800
$ 40,000
Griffin Inc.
1,600
Luck Company
1,250
37,500
33,750
Wilson Company
1,000
40,000
37,000
Total
$117,500
$115,550

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