Last Unguaranteed Financial Inc. purchased the following trading securities during Year 1, its first year of operations: Name Number of Shares Cost Arden Enterprises Inc. 5,000   $150,000   French Broad Industries Inc. 2,750   66,000   Pisgah Construction Inc. 1,600   104,000     Total     $320,000   The market price per share for the trading security portfolio on December 31, Year 1, was as follows:   Market Price per Share,   Dec. 31, Year 1 Arden Enterprises Inc. $34   French Broad Industries Inc. 26   Pisgah Construction Inc. 60   a.  Provide the journal entry to adjust the trading security portfolio to fair value on December 31, Year 1. If no entry is required, select "no entry required" and leave the amount box blank.

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.