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Please help with these accounting questions Saved Problem 15-3A (Static) Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [The following
Please help with these accounting questions
Saved Problem 15-3A (Static) Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [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 Cost Fair Value Company A bonds $ 535,300 $ 490,000 Company B notes 159,380 154,000 Company C bonds 662,750 713,630 Stoll enters into the following transactions involving its available for sale debt securities this year, January 29 sold one half of the company notes for $79,200. July 6 Purchased Company x bonds for $126,600 November 13 Purchased company 2 notes for $267,900. December 9 sold all of the Company A bonds for $515,000. Foir values at December 31 ore B. $81,000; C. $665,000; X $118,000, and Z. $278,000 Problem 15-3A (Static) Part 1 and 2 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 No Credit Date January 29 Debit 79,200 1 General Journal Cash Loss on sale of debt investments Debt investments - AFS 490 79,690 2 July 06 126,600 Debt investments - AFS Cash >> 126,600 3 November 13 Debt investments - AFS 267,900 > Cash 267,900 4 December 09 Cash 515,000 20,300 Loss on sale of debt investments Debt investments - AFS 535,300 5 December 31 5,040 Fair value adjustment-AFS Unrealized gain - Equity > > 5,040 X Dacultad 1 Required information Cost Fair Value Unrealized Amount Gain or Loss? 102 December 31 AFS Securities Company 8 notes Company C bonds Company Xbonds S $ 79,690 662,750 126,600 >>> 81,000 685,000 118,000 Total S 369,040 $ 864,000 $ 5,040 Gain $ 5,000 Dobit O December 31 Balance in the Fair Value Adjustment account Balance at beginning of year in the Fair Value Adjustment account December 31 required adjustment to the Fair Value Adjustment account Dobit Dett Fair Value Adjustment(AFS) 0 0 5060 Balance at end of Step by Step Solution
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