Storm, Inc. purchased the following available-for-sale securities during Year 1, its first year of operations: Name Number of Shares Cost Dust Devil, Inc. 1,880 $80,840 Gale Co. 800 64,000 Whirlwind Co. 2,850 111,150 Total $255,990 The market price per share for the available-for-sale security portfolio on December 31, Year 1, was as follows: Market Price per Share, Dec. 31, Year 1 Dust Devil, Inc. $39 Gale Co. 75 Whirlwind Co. 41 Required: A. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, Year 1. Refer to the Chart of Accounts for exact wording of account titles. B. Describe the income statement impact from the December 31, Year 1, journal entry.
Storm, Inc. purchased the following available-for-sale securities during Year 1, its first year of operations: Name Number of Shares Cost Dust Devil, Inc. 1,880 $80,840 Gale Co. 800 64,000 Whirlwind Co. 2,850 111,150 Total $255,990 The market price per share for the available-for-sale security portfolio on December 31, Year 1, was as follows: Market Price per Share, Dec. 31, Year 1 Dust Devil, Inc. $39 Gale Co. 75 Whirlwind Co. 41 Required: A. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, Year 1. Refer to the Chart of Accounts for exact wording of account titles. B. Describe the income statement impact from the December 31, Year 1, journal entry.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 16E
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Can you help with the following?
Storm, Inc. purchased the following available-for-sale securities during Year 1, its first year of operations:
| Name | Number of Shares | Cost |
| Dust Devil, Inc. | 1,880 | $80,840 |
| Gale Co. | 800 | 64,000 |
| Whirlwind Co. | 2,850 | 111,150 |
| Total | $255,990 |
The market price per share for the available-for-sale security portfolio on December 31, Year 1, was as follows:
|
|
Market Price per Share,
|
|
Dec. 31, Year 1
|
|
| Dust Devil, Inc. | $39 |
| Gale Co. | 75 |
| Whirlwind Co. | 41 |
Required:
| A. | Provide the |
| B. | Describe the income statement impact from the December 31, Year 1, journal entry. |
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