ournal entries for trading investments Gruden Bancorp Inc. purchased a portfolio of trading securities during 20Y3, its first year of operations. The cost and fair value of this portfolio on December 31, 20Y3, are as follows: Issuing Company Cost Fair Value Griffin Inc. $40,000 $44,800 Luck Company 37,500 33,750 Wilson Company 40,000 37,000 Total $117,500 $115,550 On May 10, 20Y4, Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $34,900.
Gruden Bancorp Inc. purchased a portfolio of trading securities during 20Y3, its first year of operations. The cost and fair value of this portfolio on December 31, 20Y3, are as follows:
| Issuing Company | Cost | Fair Value |
| Griffin Inc. | $40,000 | $44,800 |
| Luck Company | 37,500 | 33,750 |
| Wilson Company | 40,000 | 37,000 |
| Total | $117,500 | $115,550 |
On May 10, 20Y4, Gruden Bancorp Inc. purchased trading securities of Carroll Inc. for $34,900.
Journalize the entries to record the following: If an amount box does not require an entry, leave it blank.
a. The
| 20Y3, Dec. 31 | fill in the blank 0de958062fa6ff5_2 | fill in the blank 0de958062fa6ff5_3 | |
| fill in the blank 0de958062fa6ff5_5 | fill in the blank 0de958062fa6ff5_6 |
b. The May 10, 20Y4, purchase of Carroll Inc. securities.
| 20Y4, May 10 | fill in the blank 095f32097056020_2 | fill in the blank 095f32097056020_3 | |
| fill in the blank 095f32097056020_5 | fill in the blank 095f32097056020_6 |
c. The adjusting entry for the portfolio of trading securities on December 31, 20Y4. Assume that except for the purchase of Carroll Inc. securities there were no other transactions involving trading securities in 20Y4. In addition, assume that the fair value of the portfolio of trading securities on December 31, 20Y4, is $175,000.
| 20Y4, Dec. 31 | fill in the blank 6915f4f38047000_2 | fill in the blank 6915f4f38047000_3 | |
| fill in the blank 6915f4f38047000_5 | fill in the blank 6915f4f38047000_6 |
d. What amount should be reported for trading investments on the December 31, 20Y4, balance sheet?
$fill in the blank c7608eff4fd8ff1_1
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