During 2012, the first year of its operations, Profit Industries purchased the following securities:

During 2013, 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 2012.
2. Record the sale of security A and security D.
3. Adjust the portfolio of securities to its fair value at the end of 2013?

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Fair Value, Fair Value, Security ClassificationCot Dec. 31, 2012 Dec. 31, 2013 $18,000 8,000 17,000 sale 24,000 $13,000 9,000 15,000 28,000 $9,000 10,000 17,000 13,000 Trading