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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. 1,900 $81,700
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. | 1,900 | $81,700 |
| Gale Co. | 860 | 69,660 |
| Whirlwind Co. | 2,840 | 110,760 |
| Total | $262,120 |
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. | 42 |
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. |
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