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	$	531,500		$	495,000
Company B notes		159,040			145,000
Company C bonds		663,000			641,100

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 $78,200.
July		6		Purchased bonds of Company X for $120,700.
Nov.		13		Purchased notes of Company Z for $268,000.
Dec.		9		Sold all of the bonds of Company A for $515,200.

The fair values at December 31 are B, $83,500 C, $605,700 X, $108,000 and Z, $280,000.

Problem 15-3A 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.