Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale securities. Fair Value Adjustment Computation - Available-for-Sale Securities Cost December 31 AFS Securities Total $ December 31 Balance in the Fair Value Adjustment account 0 $ Fair Value 0 Unrealized Amount

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale
securities.
Fair Value Adjustment Computation - Available-for-Sale Securities
Cost
Fair Value
December 31 AFS Securities
Total
$
December 31 Balance in the Fair Value Adjustment account
< Required 1
0 $
0
Unrealized
Amount
Required 2
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale securities. Fair Value Adjustment Computation - Available-for-Sale Securities Cost Fair Value December 31 AFS Securities Total $ December 31 Balance in the Fair Value Adjustment account < Required 1 0 $ 0 Unrealized Amount Required 2
[The following information applies to the questions displayed below.]
Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following.
Fair Value
$ 492,000
150,000
641,950
Cost
$ 533,600
159, 310
661,900
Stoll enters into the following transactions involving its available-for-sale debt securities this year.
January 29 Sold one-half of the Company B notes for $78,430.
July 6 Purchased Company X bonds for $120,800.
Required:
1. Prepare journal entries to record these transactions, including the December 31 adjusting entry to record the fair value
adjustment for the long-term investments in available-for-sale securities.
2. Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale
securities.
Available-for-Sale Securities
Company A bonds
Company B notes
Company C bonds.
November 13 Purchased Company Z notes for $267,100.
December 9 Sold all of the Company A bonds for $524,100.
Fair values at December 31 are B, $82,500; C, $609,100; X, $118,000; and Z, $279,000.
Complete this question by entering your answers in the tabs below.
✓
Required 1 Required 2
V
Prepare journal entries to record these transactions, including the December 31 adjusting entry to record the fair value adjustment for
the long-term investments in available-for-sale securities.
View transaction list View journal entry worksheet
Date
January 29
No
2
3
July 06
Cash
Loss on sale of debt investments
Stock investments
Stock investments
Cash
November 13 Stock investments
Cash
General Journal
4 December 09 Cash
Loss on sale of stock investments
Stock investments
< Required 1
Required 2 >
Debit
78,430
120,800
267,100
524,100
Credit
120,800
267,100
7,230
516,870
Transcribed Image Text:[The following information applies to the questions displayed below.] Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Fair Value $ 492,000 150,000 641,950 Cost $ 533,600 159, 310 661,900 Stoll enters into the following transactions involving its available-for-sale debt securities this year. January 29 Sold one-half of the Company B notes for $78,430. July 6 Purchased Company X bonds for $120,800. Required: 1. Prepare journal entries to record these transactions, including the December 31 adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities. 2. Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale securities. Available-for-Sale Securities Company A bonds Company B notes Company C bonds. November 13 Purchased Company Z notes for $267,100. December 9 Sold all of the Company A bonds for $524,100. Fair values at December 31 are B, $82,500; C, $609,100; X, $118,000; and Z, $279,000. Complete this question by entering your answers in the tabs below. ✓ Required 1 Required 2 V Prepare journal entries to record these transactions, including the December 31 adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities. View transaction list View journal entry worksheet Date January 29 No 2 3 July 06 Cash Loss on sale of debt investments Stock investments Stock investments Cash November 13 Stock investments Cash General Journal 4 December 09 Cash Loss on sale of stock investments Stock investments < Required 1 Required 2 > Debit 78,430 120,800 267,100 524,100 Credit 120,800 267,100 7,230 516,870
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