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. 1,400 $18,760 $17,630 Luck Company 750 24,600 22,880 Wilson Company 350 10,500 10,710 Total $53,860 $51,220 On May 10, Year 2, Gruden Bancorp Inc. purchased 500 shares of Carroll Inc., at $30 per share plus a $90 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 fill in the blank fc5d10fdb048f9d_2 fill in the blank fc5d10fdb048f9d_4 b. The May 10, Year 2, purchase of Carroll Inc. stock. Year 2, May 10 fill in the blank 1c85c7f3ff9905c_2
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. 1,400 $18,760 $17,630 Luck Company 750 24,600 22,880 Wilson Company 350 10,500 10,710 Total $53,860 $51,220 On May 10, Year 2, Gruden Bancorp Inc. purchased 500 shares of Carroll Inc., at $30 per share plus a $90 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 fill in the blank fc5d10fdb048f9d_2 fill in the blank fc5d10fdb048f9d_4 b. The May 10, Year 2, purchase of Carroll Inc. stock. Year 2, May 10 fill in the blank 1c85c7f3ff9905c_2
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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Fair Value
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. | 1,400 | $18,760 | $17,630 | ||||
| Luck Company | 750 | 24,600 | 22,880 | ||||
| Wilson Company | 350 | 10,500 | 10,710 | ||||
| Total | $53,860 | $51,220 |
On May 10, Year 2, Gruden Bancorp Inc. purchased 500 shares of Carroll Inc., at $30 per share plus a $90 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 | fill in the blank fc5d10fdb048f9d_2 | ||
| fill in the blank fc5d10fdb048f9d_4 |
b. The May 10, Year 2, purchase of Carroll Inc. stock.
| Year 2, May 10 | fill in the blank 1c85c7f3ff9905c_2 | ||
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