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 B notes Company C bonds Cost Fair Value $ 533,900 159,350 663,800 $ 492,000 151,000 646,440 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 $78,370. July 6 Purchased Company X bonds for $124,800. November 13 Purchased Company Z notes for $267,400. December 9 Sold all of the Company A bonds for $519,400. Fair values at December 31 are B, $82,200; C. $604,900; X, $115,000; and Z. $277,000. 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 B notes Company C bonds Cost Fair Value $ 533,900 159,350 663,800 $ 492,000 151,000 646,440 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 $78,370. July 6 Purchased Company X bonds for $124,800. November 13 Purchased Company Z notes for $267,400. December 9 Sold all of the Company A bonds for $519,400. Fair values at December 31 are B, $82,200; C. $604,900; X, $115,000; and Z. $277,000. 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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Transcribed Image Text: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 B notes
Company C bonds
Cost
Fair Value
$ 533,900
159,350
663,800
$ 492,000
151,000
646,440
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 $78,370.
July 6 Purchased Company X bonds for $124,800.
November 13 Purchased Company Z notes for $267,400.
December 9 Sold all of the Company A bonds for $519,400.
Fair values at December 31 are B, $82,200; C. $604,900; X, $115,000; and Z. $277,000.
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.
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