Willow Creek Incorporated had the following portfolio of securities on December 31, 2010: The balances in the

Question:

Willow Creek Incorporated had the following of securities on December 31, 2010:

Willow Creek Incorporated had the following portfolio of securit

The balances in the market adjustment accounts as of January 1, 2010, were as follows:
Market Adjustment€”Trading Securities . . . . . . . . . . . . . . . . . . . . . . $9,000 Dr.
Market Adjustment€”Available-for-Sale Securities . . . . . . . . . . . . . . 3,600 Cr.
During 2011, Willow Creek determined that certain securities should be reclassified. Those reclassifications are as follows:

Instructions:
1. Make the necessary journal entries to adjust Willow Creek€™s portfolio of securities to fair value as of December 31, 2010.
2. Make the necessary journal entries to reclassify the securities in2011.

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...