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
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 52BE
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