Question

Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale...

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.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale...
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....
Problem 15-3A Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [The...
Problem 15-3A 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 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 $ 533,600 $ 490,000 Company B notes 159,230 152,000 Company C bonds 662,000 640,190 Stoll enters into the following transactions involving its available-for-sale debt securities this year. Jan. 29 Sold one-half of the...
Required information Problem 15-5A Long-term investment transactions; unrealized and realized gains and losses LO C2, P3,...
Required information Problem 15-5A Long-term investment transactions; unrealized and realized gains and losses LO C2, P3, P4 [The following information applies to the questions displayed below.] Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost Fair Value 45,000 shares of Company A common stock $ 1,031,600 $ 910,000 12,000 shares of Company B common stock 322,750 312,000 26,000 shares of Company C common stock 1,332,500 1,287,875 Stoll enters into the following long-term investment...
Suppose Pendant Corporation holds the following​ available-for-sale securities as​ long-term investments at December​ 31, 2017​: Stock...
Suppose Pendant Corporation holds the following​ available-for-sale securities as​ long-term investments at December​ 31, 2017​: Stock Cost Level 1 Fair Value The Macmilliam Company $62,000 $55,000 The Bushwood Company $18,000 $11,000 $80,000 $66,000 Show how Pendant will report​ long-term investments on its December​ 31, 2017​, balance sheet. ​(Abbreviation used: AFSS​ = available-for-sale​ security.) Assets Select from: Investments in AFSS Loss on sale of investments in AFSS Unrealized gain on investments in AFSS $?
Journ Co. purchased short-term investments in available-for-sale debt securities at a cost of $52,200 cash on...
Journ Co. purchased short-term investments in available-for-sale debt securities at a cost of $52,200 cash on November 25. At December 31, these securities had a fair value of $51,200. This is the first and only time the company has purchased such securities. 1. 2. & 3. Prepare the November 25 entry to record the purchase of debt securities, the December 31 year-end adjusting entry for the securities' portfolio, and the April 6 entry when Journ sells 8% of these securities...
In its first year of operations, Crane Corporation purchased, as a long-term investment, available-for-sale debt securities...
In its first year of operations, Crane Corporation purchased, as a long-term investment, available-for-sale debt securities costing $66,000. At December 31, 2020, the fair value of the securities is $61,400. Prepare the adjusting entry to record the securities at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit...
exercise 15-9 Fair value adjustment to available-for-sale securities LO P3 Prescrip Co. began operations in 2016....
exercise 15-9 Fair value adjustment to available-for-sale securities LO P3 Prescrip Co. began operations in 2016. The cost and fair values for its long-term investments portfolio in available-for-sale securities are shown below. Prepare the December 31, 2017, adjusting entry to reflect any necessary fair value adjustment for these investments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Portfolio of Available-for-Sale Securities Cost Fair Value December 31, 2016 $ 66,974 $...
At December 31, the Long-Term Investments (Available-for-sale securities or “AFS”) had a fair value of $180,190....
At December 31, the Long-Term Investments (Available-for-sale securities or “AFS”) had a fair value of $180,190. The AFS Investment was originally purchased on May 1, 2017 for $160,500. CMC uses a “Fair Value Adjustment” account (an adjunct/contra account to the Investments) to mark-to-market the investment portfolio at year end. CMC’s tax rate is 21%. What is the Adjusting Journal Entry for this?
In its first year of operations, Oriole Corporation purchased, as a long-term investment, available-for-sale debt securities...
In its first year of operations, Oriole Corporation purchased, as a long-term investment, available-for-sale debt securities costing $67,500. At December 31, 2020, the fair value of the securities is $62,750. Prepare the adjusting entry to record the securities at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L...
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $900,000 and sold the bonds on January 3, 2019, for $908,500. At December 31, the bonds had a fair value of $893,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT