Required information Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [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 Company Cost $530,300 159,210 663,600 Fair Value $ 494,000 154,000 notes Company C bonds 648,160 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 $78,920. July 6 Purchased Company X bonds for $127,100. November 13 Purchased Company 2 notes for $267,900. December 9 Sold all of the Company A bonds for $522,300. Fair values at December 31 are B, $83,300; C, $604,600, X, $112,000, and Z, $290,000. Problem 15-3A (Algo) 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.
Required information Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [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 Company Cost $530,300 159,210 663,600 Fair Value $ 494,000 154,000 notes Company C bonds 648,160 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 $78,920. July 6 Purchased Company X bonds for $127,100. November 13 Purchased Company 2 notes for $267,900. December 9 Sold all of the Company A bonds for $522,300. Fair values at December 31 are B, $83,300; C, $604,600, X, $112,000, and Z, $290,000. Problem 15-3A (Algo) 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.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 19E
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![Required information
Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and
losses LO P3
[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.
Cost
$530,300
159,210
663,600
Available-for-Sale Securities
Company A bonds
Company B notes
Company C bonds
Stoll enters into the following transactions involving its available-for-sale debt securities this year.
Fair Value
$ 494,000
Problem 15-3A (Algo) Part 1 and 2
154,000
648,160
January 29 Sold one-half of the Company B notes for $78,920.
July 6 Purchased Company X bonds for $127,100.
November 13 Purchased Company 2 notes for $267,900.
December 9 Sold all of the Company A bonds for $522,300.
Fair values at December 31 are B, $83,300, C, $604,600, X, $112,000, and Z, $290,000.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fef15f7a6-25d7-40a2-9077-df75f7df378b%2F198a054b-f4e2-4574-be5a-18beebd714bf%2Fzim4zul_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and
losses LO P3
[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.
Cost
$530,300
159,210
663,600
Available-for-Sale Securities
Company A bonds
Company B notes
Company C bonds
Stoll enters into the following transactions involving its available-for-sale debt securities this year.
Fair Value
$ 494,000
Problem 15-3A (Algo) Part 1 and 2
154,000
648,160
January 29 Sold one-half of the Company B notes for $78,920.
July 6 Purchased Company X bonds for $127,100.
November 13 Purchased Company 2 notes for $267,900.
December 9 Sold all of the Company A bonds for $522,300.
Fair values at December 31 are B, $83,300, C, $604,600, X, $112,000, and Z, $290,000.
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.
![el
Required information
Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and
losses LO P3
[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
Fair Value
$ 494,000
154,000
Company 8 notes
Company C bonds
648,160
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 $78,920.
July 6 Purchased Company X bonds for $127,100.
November 13 Purchased Company 2 notes for $267,900.
December 9 Sold all of the Company A bonds for $522,300.
Fair values at December 31 are B, $83,300, C, $604,600; X, $112,000, and Z, $290,000
Cost
$530,300
159,210
663,600
Problem 15-3A (Algo) Part 3
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fef15f7a6-25d7-40a2-9077-df75f7df378b%2F198a054b-f4e2-4574-be5a-18beebd714bf%2Facg7bv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:el
Required information
Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and
losses LO P3
[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
Fair Value
$ 494,000
154,000
Company 8 notes
Company C bonds
648,160
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 $78,920.
July 6 Purchased Company X bonds for $127,100.
November 13 Purchased Company 2 notes for $267,900.
December 9 Sold all of the Company A bonds for $522,300.
Fair values at December 31 are B, $83,300, C, $604,600; X, $112,000, and Z, $290,000
Cost
$530,300
159,210
663,600
Problem 15-3A (Algo) Part 3
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?
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