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 Company A bonds Cost Fair Value $ 495,000 Company B notes Company C bonds $ 531,500 159,040 663,000 145,000 641,100 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 $78,200. July 6 Purchased Company X bonds for $120,700. November 13 Purchased Company 2 notes for $268,000. December 9 Sold all of the Company A bonds for $515,200. Fair values at December 31 are B, $83,500; C, $605,700; X, $108,000; and 2, $280,000. 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. Record the year-end adjusting entry for the securities portfolio as of December 31. Note: Enter debits before credits. Date December General Journal Debit Credit 31 Fair value adjustment-AFS Unrealized gain-Equity Record entry Clear entry View general journal Fair Value Adjustment Computation-Available-for-Sale Securities December 31 AFS Securities Total Cost Fair Value $ 0 $ 0 December 31 Balance in the Fair Value Adjustment account Unrealized Amount