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 Fair Value $ 495,000 147,000 648,390 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 $78,170. July 6 Purchased Company X bonds for $127,000. November 13 Purchased Company 2 notes for $267,500. December 9 Sold all of the Company A bonds for $517,400. Fair values at December 31 are B, $80,600; C, $600,800; X, $120,000; and Z, $279,000. Cost $530,500 159,080 663,000 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 Company A bonds Company B notes Company C bonds Fair Value $ 495,000 147,000 648,390 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 $78,170. July 6 Purchased Company X bonds for $127,000. November 13 Purchased Company 2 notes for $267,500. December 9 Sold all of the Company A bonds for $517,400. Fair values at December 31 are B, $80,600; C, $600,800; X, $120,000; and Z, $279,000. Cost $530,500 159,080 663,000 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.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter13: Marketable Securities And Derivatives
Section: Chapter Questions
Problem 23P
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Question
![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
Fair Value
$ 495,000
Company A bonds
Cost
$530,500
159,080
663,000
Company B notes
147,000
648,390
Company C bonds
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 $78,170.
July 6 Purchased Company X bonds for $127,000.
November 13 Purchased Company Z notes for $267,500.
December 9 Sold all of the Company A bonds for $517,400.
Fair values at December 31 are B, $80,600; C, $600,800; X, $120,000; 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.
Complete this question by entering your answers in the tabs below.
Required information
Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale
securities.
Total
Fair Value Adjustment Computation - Available-for-Sale Securities
Cost
Fair Value
December 31 AFS Securities
December 31 Balance in the Fair Value Adjustment account
< Required 1
Unrealized
Amount
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96ccea39-6e20-4e83-b9fb-b22d2ae10407%2Fca2fabc0-058f-4593-b80e-b32c34b55768%2F1l5ugw_processed.png&w=3840&q=75)
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
Fair Value
$ 495,000
Company A bonds
Cost
$530,500
159,080
663,000
Company B notes
147,000
648,390
Company C bonds
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 $78,170.
July 6 Purchased Company X bonds for $127,000.
November 13 Purchased Company Z notes for $267,500.
December 9 Sold all of the Company A bonds for $517,400.
Fair values at December 31 are B, $80,600; C, $600,800; X, $120,000; 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.
Complete this question by entering your answers in the tabs below.
Required information
Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale
securities.
Total
Fair Value Adjustment Computation - Available-for-Sale Securities
Cost
Fair Value
December 31 AFS Securities
December 31 Balance in the Fair Value Adjustment account
< Required 1
Unrealized
Amount
Required 2 >
![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
Fair Value
$ 495,000
Company B notes
Cost
$530,500
159,080
663,000
Company C bonds
147,000
648,390
Stoll enters into the following transactions involving its available-for-sale debt securities this year.
Sold one-half of the Company B notes for $78,170.
Purchased Company X bonds for $127,000.
January 29
July 6
November 13 Purchased Company Z notes for $267,500.
December 9 Sold all of the Company A bonds for $517,400.
Fair values at December 31 are B, $80,600; C, $600,800; X, $120,000; 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.
Complete this question by entering your answers in the tabs below.
Required information
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.
View transaction list
Journal entry worksheet
<
1
2
Sold one-half of the notes Company B for $78,170.
Date
January 29
3 4 5
Note: Enter debits before credits.
Record entry
General Journal
Clear entry
< Required 1
Debit
Credit
View general journal
Required 2 >
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96ccea39-6e20-4e83-b9fb-b22d2ae10407%2Fca2fabc0-058f-4593-b80e-b32c34b55768%2Fsiev7q6_processed.png&w=3840&q=75)
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
Fair Value
$ 495,000
Company B notes
Cost
$530,500
159,080
663,000
Company C bonds
147,000
648,390
Stoll enters into the following transactions involving its available-for-sale debt securities this year.
Sold one-half of the Company B notes for $78,170.
Purchased Company X bonds for $127,000.
January 29
July 6
November 13 Purchased Company Z notes for $267,500.
December 9 Sold all of the Company A bonds for $517,400.
Fair values at December 31 are B, $80,600; C, $600,800; X, $120,000; 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.
Complete this question by entering your answers in the tabs below.
Required information
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.
View transaction list
Journal entry worksheet
<
1
2
Sold one-half of the notes Company B for $78,170.
Date
January 29
3 4 5
Note: Enter debits before credits.
Record entry
General Journal
Clear entry
< Required 1
Debit
Credit
View general journal
Required 2 >
>
Expert Solution
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Step 1
AFS
AFS is the short form used for denoting Available for sale securities. These securities are sold by company prior to its actual date of maturity due to which there is either unrealized gains or unrealized losses to the company.
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