Question
Required information [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
Required information [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 i Company B notes Company C bonds Cost $ 531,500 159,040 663,000 Fair Value $ 495,000 145,000 641,100 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 Z, $280,000. Required: 1. Prepare journal entries to record these transactions, including the December 31 adjusting entry to record the fair value adjustm 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 secur 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. View transaction list Journal entry worksheet < 1 2 3 4 5 Sold one-half of the notes Company B for $78,200. Note: Enter debits before credits.
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