96. Skyline, Inc. purchased a portfolio of trading securities during 2010. The cost and fair value of this portfolio on December 31, 2010, was as follows:
Name
Number of Shares
Total Cost
Total Fair Value
Alcon, Inc.
1,200
$16,000
$15,000
Easton Company
700
23,000
21,500
Panther Company
300
9,000
9,200
Total
$48,000
$45,700
On April 3, 2011, Skyline, Inc. purchased 500 shares of Christen, Inc. at $30 per share plus a $100 brokerage fee. On December 31, 2011, the trading security portfolio had the following cost and fair value:
Name
Number of Shares
Total Cost
Total Fair Value
Alcon, Inc.
1,200
$16,000
$16,400
Christen, Inc.
500
15,100
17,500
Easton Company
700
23,000
22,000
Panther Company
300
9,000
12,400
Total
$63,100
68,300
Required:Provide the journal entries to record the following:(1) The adjustment of the trading security portfolio to fair value on December 31, 2010.(2) The April 3, 2011 purchase of Christen, Inc. stock.(3) The adjustment of the trading securities portfolio to fair value on December 31, 2011.
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