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 $ 530,500 $ 495,000 Company B notes 159,080 147,000 Company C bonds 663,000 648,390 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 $78,170. July 6 Purchased bonds of Company X for $127,000. Nov. 13 Purchased notes of Company Z for $267,500. Dec. 9 Sold all of the bonds of Company A for $517,400. The fair values at December 31 are B, $80,600 C, $600,800 X, $120,000 and Z, $279,000.

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.