horizon bancorp inc purchased a portfolio of trading securities 256105

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:

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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:

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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.

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