Lipscomb Inc. purchased a portfolio of available-for-sale securities in 2009, its first year of operations. The cost and fair value of this portfolio on December 31, 2009, was as follows:

On May 10, 2010, Lipscomb purchased 700 shares of Nova Inc. at $50 per share plus a $150 brokerage fee. On December 31, 2010, the available-for-sale security portfolio had the following cost and fair value:

Provide the journal entries to record the following:(a) The adjustment of the available-for-sale security portfolio to fair value on December 31, 2009.(b) The May 10, 2010, purchase of Nova Inc. stock.(c) The adjustment of the available-for-sale security portfolio to fair value on December 31,2010.

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Number of Shares Total Cost Name Total Fair Value Loomis, Inc. Parker Corp. Smithfield Corp. Total $10,000 22,800 $ 9,000 21,000 32,500 $62,500 600 900 1,800 31,000 $63,800