Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Cost Company A bonds Company B notes Company C bonds $ 534,500 159,060 662,700 Fair Value $ 491,000 155,000 646,190 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 $78,500. July 6 Purchased Company x bonds for $120,400. November 13 Purchased Company 2 notes for $267,700. December 9 Sold all of the Company A bonds for $524,600. Fair values at December 31 are B. $84,300; C, $601,500; X, $112,000; and Z, $270,000. 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 Company's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Cost Company A bonds Company B notes Company C bonds $ 534,500 159,060 662,700 Fair Value $ 491,000 155,000 646,190 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 $78,500. July 6 Purchased Company x bonds for $120,400. November 13 Purchased Company 2 notes for $267,700. December 9 Sold all of the Company A bonds for $524,600. Fair values at December 31 are B. $84,300; C, $601,500; X, $112,000; and Z, $270,000. 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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 11GI

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