Required information (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 Available for Sale Securities Company A bonds Company 8 notes Company C bonds Cost $ 532,700 159, 240 662, 600 Fair Value $ 494,000 152,000 645, 100 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 $78,640. July 6 Purchased Company x bonds for $123,700. November 13 Purchased Company 2 notes for $267,700. December 9 Sold all of the Company A bonds for $524,800. Fair values at December 31 are B. $83,300; C, $600,200, x, $113,000; and Z. $276,000. 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.
Required information (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 Available for Sale Securities Company A bonds Company 8 notes Company C bonds Cost $ 532,700 159, 240 662, 600 Fair Value $ 494,000 152,000 645, 100 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 $78,640. July 6 Purchased Company x bonds for $123,700. November 13 Purchased Company 2 notes for $267,700. December 9 Sold all of the Company A bonds for $524,800. Fair values at December 31 are B. $83,300; C, $600,200, x, $113,000; and Z. $276,000. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information.
[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.
Available for Sale Securities
Company A bonds
Company 8 notes
Company C bonds
Cost
$ 532,700
159, 240
Fair Value
$ 494,000
152,000
662, 600
645, 100
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 $78,640.
July 6 Purchased Company x bonds for $123, 700.
November 13 Purchased Company 2 notes for $267,700.
December 9 Sold all of the Company A bonds for $524,800.
Fair values at December 31 are B. $83,300; C, $600,200, X, $113,000; and 2, $276,000.
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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.
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