[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 Cost $ 534,300 159,200 662,500 Fair Value Company B notes Company C bonds $ 493,000 152,000 641,220 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 $78,690. July 6 Purchased Company X bonds for $128,000. November 13 Purchased Company Z notes for $267,200. December 9 Sold all of the Company A bonds for $523,500. Fair values at December 31 are B, $82,000; C, $600,000; X, $115,000; and Z, $280,000. quired: 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.
[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 Cost $ 534,300 159,200 662,500 Fair Value Company B notes Company C bonds $ 493,000 152,000 641,220 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 $78,690. July 6 Purchased Company X bonds for $128,000. November 13 Purchased Company Z notes for $267,200. December 9 Sold all of the Company A bonds for $523,500. Fair values at December 31 are B, $82,000; C, $600,000; X, $115,000; and Z, $280,000. quired: 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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 9E
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