Storm, Inc. purchased the following available-for-sale securities during 20Y9, its first year of operations: Name ________________ Number
Question:
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?
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...
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Related Book For
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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