Storm, Inc. purchased the following available-for-sale securities during 2016, its first year of operations:
Name Number of Shares Cost
Dust Devil, Inc. 1,900 $81,700
Gale Co. 850 68,000
Whirlwind Co. 2,850 114,000
Total $263,700
The market price per share for the available-for-sale security portfolio on December 31, 2016, was as follows:
Market Price per Share,
Dec. 31, 2016
Dust Devil, Inc. $40
Gale Co. 75
Whirlwind Co. 42
Required:
a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, 2016
b. Is there any impact of December 31, 2016 journal entry on the income statement?.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Storm, Inc. purchased the following available-for-sale securities during 2016, its first year of operations: Name Number of Shares Cost ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Dahlia is explaining to her sister why a positive credit history is important. Which of the following should Dahlia give as reasons for a positive credit history? Check all that apply. A good credit history portrays irresponsibility.
Answers (1)
The accounts receivable balance for Renue Spa at December 31, 2017, was $61,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $3,750. During 2018, $2,100 of accounts receivable were written off as uncollectible.
Answers (1)
Which of the following is true about an income statement? a. The income statement accurately represents all cash inflows and outflows for a given period of time. b. The income statement is reported on an accrual basis. c.
Answers (1)
Characterize the following actions of a firm as financing, investing, or operating activities: Scenario Operating Activity Investing Activity Financing Activity __Sells a tract of land it has held for years __Increases its use of trade credit from
Answers (1)
Which of the following statements is TRUE? A) Only Canada can benefit from trade because the United States has an absolute advantage inthe production of both soybeans and alfalfa.
Answers (1)
New Questions in Business
Bear Co. prepares its statement of cash flows using the indirect method. Bear sold equipment with a carrying value of $500,000 for cash of $400,000.
Answers (1)
Assume the total cost of a college education will be $345,000 when your child enters college in 18 years. You presently have $73,000 to invest.
Answers (2)
Who among the following is a manager with good time-management skills? a. Jim, who completes tasks mostly through his own efforts to ensure consistency b. Lee, who performs at least five activities at a time to increase productivity c.
Answers (1)
Joseph ray just received an inheritance of $35,775 from his great aunt. he plans to invest the funds for retirement. if joseph can earn 4.
Answers (1)
The three types of manufacturing costs in a job order costing system include
Answers (1)