Required information

[The following information applies to the questions displayed below.] Stoll Co.'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			640,940

Stoll enters into the following transactions involving its available-for-sale debt securities this year.

Jan.		29		Sold one-half of the Company B notes for $79,200.
July		6		Purchased bonds of Company X for $126,600.
Nov.		13		Purchased notes of Company Z for $267,900.
Dec.		9		Sold all of the bonds of Company A for $515,000.

The fair values at December 31 are B, $81,000 C, $610,000 X, $118,000 and Z, $278,000.

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.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

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.

• 1

  Sold one-half of the notes Company B for $79,200.

• 2

  Purchased bonds of Company X for $126,600.

• 3

  Purchased notes of Company Z for $267,900.

• 4

  Sold all of the bonds of Company A for $515,000.

• 5

  Record the year-end adjusting entry for the securities portfolio as of December 31.

• Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

• Fair Value Adjustment Computation - Available-for-Sale Securities
  December 31 AFS Securities	Cost	Fair Value	Unrealized Amount
  Total	$0	$0
  -1
  -1
  -1

  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 Co.'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			640,940

  Stoll enters into the following transactions involving its available-for-sale debt securities this year.

  Jan.		29		Sold one-half of the Company B notes for $79,200.
  July		6		Purchased bonds of Company X for $126,600.
  Nov.		13		Purchased notes of Company Z for $267,900.
  Dec.		9		Sold all of the bonds of Company A for $515,000.

  The fair values at December 31 are B, $81,000 C, $610,000 X, $118,000 and Z, $278,000.

  3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale debt securities does Stoll report on its income statement for this year?