Required Information Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and...
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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. Available-for-sale Securities Company A bonds Company B notes Company C bonds Cost $ 523,600 159, 310 661,900 Fair Value $ 492,000 150,000 641,950 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, 430. July 6 Purchased Company X bonds for $120,800. November 13 Purchased Company 2 notes for $267,100. December 9 Sold all of the Company A bonds for $524,100. Fair values at December 31 are B, $82,500; C, $609,100; X, $118,000, and Z, $279,000. Record the year-end adjusting entry for the securities portfolio as of December 31. Note: Enter debits before credits. Date Debit Credit Dec. 31 General Journal Fair value adjustment - AFS Unrealized gain - Equity
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