Storm, Inc. purchased the following available-for-sale securities during 20Y9, 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, 20Y9, was as follows:
________________________________ Market Price per Share,
____________________________________ Dec. 31, 20Y9
Dust Devil, Inc. ...................................... $40
Gale Co. ................................................ 75
Whirlwind Co. ......................................... 42
a. Journalize the entry to adjust the available-for-sale security portfolio to fair value on December31, 20Y9.
b. Describe the income statement impact from the December 31, 20Y9, journal entry?