Response to the following problem:
On February 1, Year 2, the Razorback Corporation decides to transfer its available-for-sale securities to the trading category. These securities had been purchased for $9,400 early in Year 1 and had a fair value of $11,700 on December 31, Year 1. On February 1, Year 2, the securities have a fair value of $12,500. Prepare the journal entries to record the transfer.