Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3

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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	$ 531,300	$ 491,000
Company B notes	159,220	153,000
Company C bonds	662,500	641,950

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 $78,400.
July 6	Purchased Company X bonds for $126,500.
November 13	Purchased Company Z notes for $267,700.
December 9	Sold all of the Company A bonds for $515,100.

Fair values at December 31 are B, $83,300 C, $603,800 X, $101,000 and Z, $290,000.

Problem 15-3A (Algo) 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.