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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 B notes Company C bonds Cont $534,100 159,140 662,400 Fair Value $ 492,000 155,000 642,140 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 $78,820. July 6 Purchased Company x bonds for $122,100. November 13 Purchased Company I notes for $267,300. December 9 Sold all of the Company A bonds for $524,800. Fair values at December 31 are B, $82,300: C, $603,800; X. $120,000; 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. Complete this question by entering your answers in the tabs below.

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 Cont $534,100 159,140 662,400 Fair Value $ 492,000 155,000 642,140 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 $78,820. July 6 Purchased Company x bonds for $122,100. November 13 Purchased Company I notes for $267,300. December 9 Sold all of the Company A bonds for $524,800. Fair values at December 31 are B, $82,300: C, $603,800; X. $120,000; 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. Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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 B notes Company C bonds Cont $534,100 159,140 Fair Value $ 492,000 155,000 662,400 642,140 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 $78,820. July 6 Purchased Company x bonds for $122,100. November 13 Purchased Company I notes for $267,300. December 9 Sold all of the Company A bonds for $524,800. Fair values at December 31 are B, $82,300: C. $603,800; X. $120,000; 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. Complete this question by entering your answers in the tabs below.
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 Cont $534,100 159,140 Fair Value $ 492,000 155,000 662,400 642,140 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 $78,820. July 6 Purchased Company x bonds for $122,100. November 13 Purchased Company I notes for $267,300. December 9 Sold all of the Company A bonds for $524,800. Fair values at December 31 are B, $82,300: C. $603,800; X. $120,000; 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. Complete this question by entering your answers in the tabs below.
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