Required information Problem 15-3A Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [The following information applies to the questions displayed below.] Stoll Co's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Company A bonds Company B notes Company C bonds Cost Fair Value Problem 15-3A Part 1 and 2 $533,600 159,310 661,900 641,950 $492,000 150,000 Stoll enters into the following transactions involving its available-for-sale debt securities this year. Jan. 29 Sold one-half of the Company B netes for $78,430. July 6 Purchased bonds of Company X for $120,800. Nov. 13 Purchased notes of Company 2 for $267,100. Dec. 9 Sold all of the bonds of Company A for $524,100. The fair values at December 31 are B, $82,500; C, $609,100; X. $118,000; and Z, $279,000. 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. Complete this question by entering your answers in the tabs below.
Required information Problem 15-3A Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [The following information applies to the questions displayed below.] Stoll Co's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Company A bonds Company B notes Company C bonds Cost Fair Value Problem 15-3A Part 1 and 2 $533,600 159,310 661,900 641,950 $492,000 150,000 Stoll enters into the following transactions involving its available-for-sale debt securities this year. Jan. 29 Sold one-half of the Company B netes for $78,430. July 6 Purchased bonds of Company X for $120,800. Nov. 13 Purchased notes of Company 2 for $267,100. Dec. 9 Sold all of the bonds of Company A for $524,100. The fair values at December 31 are B, $82,500; C, $609,100; X. $118,000; and Z, $279,000. 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. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not give image format
![Required information
Problem 15-3A Debt investments in available-for-sale securities; unrealized and realized gains and losses
LO P3
[The following information applies to the questions displayed below.]
Stoll Co's long-term available-for-sale portfolio at the start of this year consists of the following.
Available-for-Sale Securities
Company A bonds
Company B notes
Company C bonds
Cost
$533,600
159,310
661,900
Problem 15-3A Part 1 and 2
Fair Value
$492,000
150,000
641,950
Stoll enters into the following transactions involving its available-for-sale debt securities this year.
Jan. 29 Sold one-half of the Company B netes for $78,430.
July
6 Purchased bonds of Company X for $120,800.
Nov. 13 Purchased notes of Company 2 for $267,100.
Dec. 9 Sold all of the bonds of Company A for $524,100.
The fair values at December 31 are B, $82,500; C, $609,100; X. $118,000; and Z, $279,000.
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.
Complete this question by entering your answers in the tabs below.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F475b0c8f-9dd7-487b-9264-3e04ebb75dff%2F4429cd31-20d6-494a-ae36-53306c931ce5%2Fcpx5pmt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 15-3A Debt investments in available-for-sale securities; unrealized and realized gains and losses
LO P3
[The following information applies to the questions displayed below.]
Stoll Co's long-term available-for-sale portfolio at the start of this year consists of the following.
Available-for-Sale Securities
Company A bonds
Company B notes
Company C bonds
Cost
$533,600
159,310
661,900
Problem 15-3A Part 1 and 2
Fair Value
$492,000
150,000
641,950
Stoll enters into the following transactions involving its available-for-sale debt securities this year.
Jan. 29 Sold one-half of the Company B netes for $78,430.
July
6 Purchased bonds of Company X for $120,800.
Nov. 13 Purchased notes of Company 2 for $267,100.
Dec. 9 Sold all of the bonds of Company A for $524,100.
The fair values at December 31 are B, $82,500; C, $609,100; X. $118,000; and Z, $279,000.
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.
Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 Required 2
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
Journal entry worksheet
<
1 2 3 4
Sold one-half of the notes Company B for $78,430.
Note: Enter debits before credits
Jan 29
Total
Show Transcribed Text
Required information
Required 1 Required 2
5
General Journal
Fair Value Adjustment Computation.
Available-for-Sale Securities
December 31 AFS Securities
Company A bonds
Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale
securities.
S
Cost
Debit
0 $
Credi
Fair Value
of
Unrealized
Amount
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education