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Fair value journal entries, trading investments Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The com 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 1.600 $40,000 $44,800 Luck Company 1,250 37,500 33,750 Wilson Company 1,000 40,000 37,000 Total $117,500 $115,550 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.

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Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

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Chapter
Section
Chapter 15, Problem 15.16EX
Textbook Problem

Fair value journal entries, trading investments

Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The com 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 1.600 $40,000 $44,800
Luck Company 1,250 37,500 33,750
Wilson Company 1,000 40,000 37,000
Total   $117,500 $115,550

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.

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Chapter 15 Solutions

Accounting
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