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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.		1,300		$17,420		$16,370
Luck Company		650		21,320		19,830
Wilson Company		200		6,400		6,530
	Total			$45,140		$42,730

On May 10, Year 2, Gruden Bancorp Inc. purchased 600 shares of Carroll Inc., at $32 per share plus a $120 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
* Fair Value Journal Entries, Available-for-Sale Investments Storm, Inc. purchased the following available-for-sale securities during Year 1, its first year of operations: Name Number of Shares Cost Dust Devil, Inc. 1,100 $32,670 Gale Co. 400 28,760 Whirlwind Co. 2,200 63,800 Total $125,230 The market price per share for the available-for-sale security portfolio on December 31, Year 1 was as follows: Market Price per Share Dec. 31, Year 1 Dust Devil, Inc $21 Gale Co. 78.5 Whirlwind Co. 28 a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, Year 1. Year 1 Dec. 31 b. Is there any impact of December 31, Year 1 journal entry on the income statement? , any unrealized gain/loss is reported of the

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