Horizon Bancorp Inc. purchased a portfolio of trading securities during 2009. The cost and fair value of this portfolio on December 31, 2009, was as follows:
On April 3, 2010, Horizon Bancorp Inc. purchased 500 shares of Cable, Inc., at $30 per share plus a $100 brokerage fee. On December 31, 2010, the trading security portfolio had the following cost and fair value:
Provide the journal entries to record the following:
(a) The adjustment of the trading security portfolio to fair value on December 31, 2009.
(b) The April 3, 2010, purchase of Cable, Inc.,stock.