During 2010, the first year of its operations, Profit Industries purchased the following securities: During 2011, Profit

Question:

During 2010, the first year of its operations, Profit Industries purchased the following securities:

During 2011, Profit sold one-half of security A for $8,000 and one-half of security D for $15,000.
Provide the journal entries required to do the following:
1. Adjust the portfolio of securities to its fair value at the end of 2010.
2. Record the sale of security A and security D.
3. Adjust the portfolio of securities to its fair value at the end of2011.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...