Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Chapter D, Problem D.10EX
Fair value
Jets Bancorp Inc. purchased a portfolio of trading securities during 20Y3. The cost and fair value of this portfolio on December 31, 20Y3, was as follows:
Journalize the entry to record the adjustment of the trading security portfolio to fair value on December 31, 20Y3.
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Last Unguaranteed Financial Inc. purchased the following trading securities during Year 1, its first year of operations:
Please see the attachment for details:
The market price per share for the trading security portfolio on December 31, Year 1, was as follows:
Please see the attachment for details:
a. Provide the journal entry to adjust the trading security portfolio to fair value on December 31, Year 1.b. Assume that the market prices of the portfolio were the same on December 31, Year 2,as they were on December 31, Year 1. What would be the journal entry to adjust the portfolio to 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:
Please see the attachment for details:
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.
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.
1,400
$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
Chapter D Solutions
Corporate Financial Accounting
Ch. D - Prob. D.1EXCh. D - Entries for stock investments, dividends, and sale...Ch. D - Bond investment transactions Starks Products uses...Ch. D - Prob. D.4EXCh. D - Prob. D.5EXCh. D - Prob. D.6EXCh. D - Prob. D.7EXCh. D - Valuing trading securities at fair value On...Ch. D - Fair value journal entries, trading investments...Ch. D - Fair value journal entries, trading investments...
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