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? .

As per accounting standards available-for-sale securities are recorded at fair value through profit and loss account or other comprehensive income. We assume that company choose to record it at fair value through profit and loss account.

The answer of each requirement is given below.

a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, 2016

Loss on valuation    $ 4,250

Investment Cost      $ 4,250

Working

Dust Devil, Inc. = 40  * 1900 = 76,000 - 81,700 = -5,700

Gale Co. = 75  * 850 = 63,750 - 68,000 = -4,250

Whirlwind Co. = 42 * 2850 = 119,700 - 114,000 = 5,700

Profit/ (Loss)   = (4,250)

b. Is there any impact of December 31, 2016 journal entry on the income statement

The company income for the year will be reduced by ($ 4,250).

answer; ///(c) the way a government controls the supply,availability,and value of money;

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'