Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Fair Value $494,000 152,000 647,730 Available-for-Sale Securities Company A bonds Company B notes Company C bonds Cost $530,800 159,470 661,900 Stoll enters into the following transactions involving its available-for-sale debt securities this year. Jan. 29 Sold one-half of the Company B notes for $78,810. July 6 Purchased bonds of Company X for $124,000. Nov. 13 Purchased notes of Company Z for $267,100. Dec. 9 Sold all of the bonds of Company A for $517,200. The fair values at December 31 are B, $85,000; C, $604,500; X, $119,000; 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.
Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Fair Value $494,000 152,000 647,730 Available-for-Sale Securities Company A bonds Company B notes Company C bonds Cost $530,800 159,470 661,900 Stoll enters into the following transactions involving its available-for-sale debt securities this year. Jan. 29 Sold one-half of the Company B notes for $78,810. July 6 Purchased bonds of Company X for $124,000. Nov. 13 Purchased notes of Company Z for $267,100. Dec. 9 Sold all of the bonds of Company A for $517,200. The fair values at December 31 are B, $85,000; C, $604,500; X, $119,000; 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.
Fair Value
$494,000
152,000
647,730
Available-for-Sale Securities
Company A bonds
Company B notes
Company C bonds
Cost
$530,800
159,470
661,900
Stoll enters into the following transactions involving its available-for-sale debt securities this
year.
Jan. 29 Sold one-half of the Company B notes for $78,810.
July 6 Purchased bonds of Company X for $124,000.
Nov. 13 Purchased notes of Company Z for $267,100.
Dec. 9 Sold all of the bonds of Company A for $517,200.
The fair values at December 31 are B, $85,000; C, $604,500; X, $119,000; 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.
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