Storm, Inc. purchased the following available-for-sale securities during 20Y9, its first year of operations: Name Number...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Storm, Inc. purchased the following available-for-sale securities during 20Y9, its first year of operations: Name Number of Shares Cost Dust Devil, Inc. 1,200 $34,080 Gale Co. 200 13,860 Whirlwind Co. 2,000 60,000 Total $107,940 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, 2016 Dust Devil, Inc. $31 Gale Co. 76 Whirlwind Co. 29 a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, 20Y9. 20Y9 Dec. 31 Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments b. Is there any impact of December 31, 20Y9 journal entry on the income statement? of the No , any unrealized gain/loss is reported Storm, Inc. purchased the following available-for-sale securities during 20Y9, its first year of operations: Name Number of Shares Cost Dust Devil, Inc. 1,200 $34,080 Gale Co. 200 13,860 Whirlwind Co. 2,000 60,000 Total $107,940 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, 2016 Dust Devil, Inc. $31 Gale Co. 76 Whirlwind Co. 29 a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, 20Y9. 20Y9 Dec. 31 Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments b. Is there any impact of December 31, 20Y9 journal entry on the income statement? of the No , any unrealized gain/loss is reported
Expert Answer:
Answer rating: 100% (QA)
Answer a Date Particulars Debit Credit 20Y9 Dec 31 Va... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1337119207
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
Students also viewed these accounting questions
-
M. Jones Inc. purchased the following available for sale securities during 20Y5, its first year of operations: The fair value of the various available-for-sale securities on December 31, 20Y5, was as...
-
During 2010, its first year of operations, LandStar Corporation purchased the following securities classified as available-for-sale securities: (a) Record the purchase of the investments for cash.(b)...
-
During 2006, its first year of operations, Lyon Research Corporation purchased the following securities as a temporary investment: a. Record the purchase of the temporary investments for cash. b....
-
The time it takes a cell to divide (called mitosis) is normally distributed with an average time of one hour and a standard deviation of 5 minutes. (a) What is the probability that a cell divides in...
-
What are the two main types of diagrams in UML?
-
Steam enters a nozzle operating steadily at 5 MPa, 350oC, 10 m/s and exits at 2 MPa, 267oC. The steam flows through the nozzle with negligible heat transfer and PE. The mass flow rate (m) is 2 kg/s....
-
Pluto Corporation issued \(\$ 400,000\) of \(7 \%, 20\) year bonds payable on March 31, 2006. The bonds were issued at 100 and pay interest on March 31 and September 30. Record (a) issuance of the...
-
Mountain Sports Inc. borrowed money for two years last week at 12%. The pure rate is 2%, and Mountains financial condition warrants a default risk premium of 3% and a liquidity risk premium of 2%....
-
QUESTION: Based on the calculations on the charts below that I already filled in, I need to know the following 1)Suppose HH doubles its sales as well as its inventories, accounts receivable, and...
-
Fast Snacks is a food franchise that sells outlets to entrepreneurs interested in opening their own businesses. The business sells a variety of healthy snacks and drinks that can be prepared rapidly....
-
C Av > == Paragraph I LZ Question > |-- > 17 Styles 17 Seled Editing The Operations Manager of Toshiba's laptop manufacturing plant is about to prepare her annual report to the Board of Directors....
-
What is the output of the following application? A. creek B. thud C. thud? D. The code does not compile. E. The code compiles, but a stack trace is printed at runtime. F. None of the above. package...
-
What is the output of the following? A. false 0 B. true 1 C. 2 D. The code does not compile. E. The code throws an exception at runtime. 20: List chars new ArrayList (); 21: chars.add('a'); 22:...
-
Which of the following are common reasons to add a checked exception to a method signature? (Choose three.) A. To alert developers that the state of the JVM has been corrupted B. To force a caller to...
-
What is the output of the following application? A. Y B. XY C. ZY D. The code does not compile. E. The code compiles, but a stack trace is printed at runtime. F. None of the above. package office;...
-
Which statement about the following program is true? A. An exception is printed at runtime with Call in the message. B. An exception is printed at runtime with Voicemail in the message. C. An...
-
On January 1, 2017, Ranger Manufacturing Company purchased equipment that makes sustainable water bottles. The purchase price of the equipment was $300,000. In addition, Ranger paid $24,000 in sales...
-
The rate at which the temperature of an object changes is proportional to the difference between its own temperature and the temperature of the surrounding medium. Express this rate as a function of...
-
Bellingham Company produced 15,000 units that require 2.5 standard pounds per unit at a $3.75 standard price per pound. The company actually used 36,000 pounds in production. Journalize the entry to...
-
Clapton Company manufactures custom guitars in a wide variety of styles. The following incomplete ledger accounts refer to transactions that are summarized for May: In addition, the following...
-
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $8,440. Aug. 14. Received $3,000...
-
Brake __________________ are simple devices that use the application of force over different sized pistons to reduce pressure.
-
A __________________ wheel half bolt is grounds for removal, and a thorough inspection of the wheel halves.
-
Power brake systems on large aircraft use the __________________ as a source of power.
Study smarter with the SolutionInn App