Question
Stoll Co.s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost Fair Value 80,000 shares of Company A common stock
Stoll Co.s long-term available-for-sale portfolio at December 31, 2016, consists of the following.
Available-for-Sale Securities | Cost | Fair Value | ||||
80,000 shares of Company A common stock | $ | 1,039,600 | $ | 920,000 | ||
28,000 shares of Company B common stock | 338,750 | 328,000 | ||||
34,000 shares of Company C common stock | 1,360,500 | 1,311,875 | ||||
Stoll enters into the following long-term investment transactions during year 2017.
Jan. | 29 | Sold 14,000 shares of Company B common stock for $168,375 less a brokerage fee of $3,400. | ||
Apr. | 17 | Purchased 21,000 shares of Company W common stock for $445,000 plus a brokerage fee of $3,100. The shares represent a 30% ownership in Company W. | ||
July | 6 | Purchased 8,000 shares of Company X common stock for $258,125 plus a brokerage fee of $3,100. The shares represent a 12% ownership in Company X. | ||
Aug. | 22 | Purchased 100,000 shares of Company Y common stock for $590,000 plus a brokerage fee of $7,900. The shares represent a 51% ownership in Company Y. | ||
Nov. | 13 | Purchased 12,000 shares of Company Z common stock for $528,800 plus a brokerage fee of $5,900. The shares represent a 5% ownership in Company Z. | ||
Dec. | 9 | Sold 80,000 shares of Company A common stock for $1,027,500 less a brokerage fee of $4,100. |
The fair values of its investments at December 31, 2017, are: B, $167,750; C, $1,225,625; W, $387,500; X, $241,250; Y, $1,067,500; and Z, 562,600.
Required: 1. Determine the amount Stoll should report on its December 31, 2017, balance sheet for its long-term investments in available-for-sale securities. 2. Prepare any necessary December 31, 2017, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.
2)
Problem 15-5A Long-term investment transactions; unrealized and realized gains and losses LO C2, P3, P4
[The following information applies to the questions displayed below.] Stoll Co.s long-term available-for-sale portfolio at December 31, 2016, consists of the following.
Available-for-Sale Securities | Cost | Fair Value | ||||
80,000 shares of Company A common stock | $ | 1,039,600 | $ | 920,000 | ||
28,000 shares of Company B common stock | 338,750 | 328,000 | ||||
34,000 shares of Company C common stock | 1,360,500 | 1,311,875 | ||||
Stoll enters into the following long-term investment transactions during year 2017.
Jan. | 29 | Sold 14,000 shares of Company B common stock for $168,375 less a brokerage fee of $3,400. | ||
Apr. | 17 | Purchased 21,000 shares of Company W common stock for $445,000 plus a brokerage fee of $3,100. The shares represent a 30% ownership in Company W. | ||
July | 6 | Purchased 8,000 shares of Company X common stock for $258,125 plus a brokerage fee of $3,100. The shares represent a 12% ownership in Company X. | ||
Aug. | 22 | Purchased 100,000 shares of Company Y common stock for $590,000 plus a brokerage fee of $7,900. The shares represent a 51% ownership in Company Y. | ||
Nov. | 13 | Purchased 12,000 shares of Company Z common stock for $528,800 plus a brokerage fee of $5,900. The shares represent a 5% ownership in Company Z. | ||
Dec. | 9 | Sold 80,000 shares of Company A common stock for $1,027,500 less a brokerage fee of $4,100. |
The fair values of its investments at December 31, 2017, are: B, $167,750; C, $1,225,625; W, $387,500; X, $241,250; Y, $1,067,500; and Z, 562,600.
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