Using the data in EA-5, assume that Dearden management purchased the Jaffa stock for the trading securities portfolio instead of the available-for-sale securities portfolio. Prepare any journal entries that are required by the facts presented in the case.
Data in EA-5
On March 10, 2015, Dearden, Inc., purchased 15,000 shares of Jaffa stock for $35 per share. Management recorded it in the available-for-sale securities portfolio. The following information pertains to the price per share of Jaffa stock:
Price
12/31/2015 ................. $33
12/31/2016 ................. 36
12/31/2017 ................. 32