! Required information Problem 15-3A (Algo) 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 $ 534,500 $ 491,000 Company B notes 159,060 155,000 Company C bonds 662,700 646,190 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 Z 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. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 No 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. Date General Journal Debit Credit January 29 78,500 Loss on sale of debt investments Debt investments - AFS 79,530 1 Cash 1.030 DO 2 July 00 120,400 Debt investments - AFS Cash 120.400 3 November 13 Debt investments - AFS 267,700 Cash 267.700 4 December 09 Cash 524,600 Loss on sale of debt investments 9,900 Debt investments - AFS 534,500 5 December 31 Fair value adjustment - AFS 62.530 Unrealized gain - Equity 62.530 Recured Required 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale securities. Gain or Loss? Fair Value Adjustment Computation - Available-for-Sale Securities Cost December 31 AFS Securities Unrealized Fair Value Amount Company B notes S 79.530 S 84.300 Company C bonds 662.700 801,500 Company X bonds 120.400 112.000 Company Z notes 267.700 270.000 Total S 1.130.330 $ 1.067.800 $ (142,060) Loss December 31 Balance in the Fair Value Adjustment account Required. 1 Het
