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 B notes Company C bonds Cost Fair Value $ 492,000 $534, 100 159, 140 662,400 155,000 642,140 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 $78,820. July 6 Purchased Company X bonds for $122, 100. November 13 Purchased Company 2 notes for $267,300. December 9 Sold all of the Company A bonds for $524,800. Fair values at December 31 are B, $82,300; C, $603,800; X, $120,000; and Z, $276,000. 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. Complete this question by entering your answers in the tabs below. < Prev of 10 Next >
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 B notes Company C bonds Cost Fair Value $ 492,000 $534, 100 159, 140 662,400 155,000 642,140 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 $78,820. July 6 Purchased Company X bonds for $122, 100. November 13 Purchased Company 2 notes for $267,300. December 9 Sold all of the Company A bonds for $524,800. Fair values at December 31 are B, $82,300; C, $603,800; X, $120,000; and Z, $276,000. 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. Complete this question by entering your answers in the tabs below. < Prev of 10 Next >
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
ChapterD: Investments
Section: Chapter Questions
Problem D.13EX
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![2
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
$ 492,000
155,000
642,140
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 $78,820.
July 6 Purchased Company X bonds for $122,100.
November 13 Purchased Company Z notes for $267,300.
December 9 Sold all of the Company A bonds for $524,800.
Fair values at December 31 are B, $82,300; C, $603,800; X. $120,000; and Z, $276,000.
Company B notes
Company C bonds
Problem 15-3A (Algo) Part 1 and 2
Cost
$ 534,100
159, 140
662,400
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.
Complete this question by entering your answers in the tabs below.
< Prev
5
6
of 10
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb8eba44-347a-485f-a080-4fb6dd0d9a90%2F2e7055b8-be29-4bd7-a4a7-7d5613517f33%2Ftxnjz1r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2
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
$ 492,000
155,000
642,140
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 $78,820.
July 6 Purchased Company X bonds for $122,100.
November 13 Purchased Company Z notes for $267,300.
December 9 Sold all of the Company A bonds for $524,800.
Fair values at December 31 are B, $82,300; C, $603,800; X. $120,000; and Z, $276,000.
Company B notes
Company C bonds
Problem 15-3A (Algo) Part 1 and 2
Cost
$ 534,100
159, 140
662,400
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.
Complete this question by entering your answers in the tabs below.
< Prev
5
6
of 10
Next >
Transcribed Image Text:Required information
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
<
Record the year-end adjusting entry for the securities portfolio as of December
31.
Note: Enter debits before credits.
Date
December
31
Fair value adjustment-AFS
Unrealized gain-Equity
Record entry
5
General Journal
Clear entry
< Prev
Debit
Edit
View general journal
of 10
Next >
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Please provide all the five entries with supporting calculation,
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Transcribed Image Text:Required information
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
<
Record the year-end adjusting entry for the securities portfolio as of December
31.
Note: Enter debits before credits.
Date
December
31
Fair value adjustment-AFS
Unrealized gain-Equity
Record entry
5
General Journal
Clear entry
< Prev
Debit
Edit
View general journal
of 10
Next >
![2
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
$ 492,000
155,000
642,140
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 $78,820.
July 6 Purchased Company X bonds for $122,100.
November 13 Purchased Company Z notes for $267,300.
December 9 Sold all of the Company A bonds for $524,800.
Fair values at December 31 are B, $82,300; C, $603,800; X. $120,000; and Z, $276,000.
Company B notes
Company C bonds
Problem 15-3A (Algo) Part 1 and 2
Cost
$ 534,100
159, 140
662,400
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.
Complete this question by entering your answers in the tabs below.
< Prev
5
6
of 10
Next >](https://content.bartleby.com/qna-images/question/db8eba44-347a-485f-a080-4fb6dd0d9a90/d6b3ca10-1a22-4ab6-9de5-820269adea5c/p6ysp7_processed.jpeg)
Transcribed Image Text:2
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
$ 492,000
155,000
642,140
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 $78,820.
July 6 Purchased Company X bonds for $122,100.
November 13 Purchased Company Z notes for $267,300.
December 9 Sold all of the Company A bonds for $524,800.
Fair values at December 31 are B, $82,300; C, $603,800; X. $120,000; and Z, $276,000.
Company B notes
Company C bonds
Problem 15-3A (Algo) Part 1 and 2
Cost
$ 534,100
159, 140
662,400
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.
Complete this question by entering your answers in the tabs below.
< Prev
5
6
of 10
Next >
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