First Guarantee Financial, Inc., purchased the following trading securities during 2012, its first year of operations:
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The market price per share for the trading security portfolio on December 31, 2012, was as follows:
Market Price Per Share
Dec. 31, 2012
B&T Transportation, Inc…………………$26
Citrus Foods, Inc…………………………..19
Stuart House wares, Inc……………………52
a. Provide the journal entry to adjust the trading security portfolio to fair value on December 31, 2012.
b. Assume the market prices of the portfolio were the same on December 31, 2013, as they were on December 31, 2012. What would be the journal entry to adjust the portfolio to fairvalue?