Stoll Co.'s long-term available-for-sale portfolio at December 31, 2014, consists of the following.
| Available-for-Sale Securities |
Cost |
Fair Value |
| 40,000 shares of Company A common stock |
$ |
535,300 |
$ |
490,000 |
| 7,000 shares of Company B common stock |
|
159,380 |
|
154,000 |
| 17,500 shares of Company C common stock |
|
662,750 |
|
640,938 |
Stoll enters into the following long-term investment transactions during year 2015.
Jan. 29 Sold 3,500 shares of Company B common stock for $79,188 less a brokerage fee of $1,500.
Apr. 17 Purchased 10,000 shares of Company W common stock for $197,500 plus a brokerage fee of $2,400. The shares represent a 30% ownership in Company W.
July 6 Purchased 4,500 shares of Company X common stock for $126,562 plus a brokerage fee of $1,750. The shares represent a 10% ownership in Company X.
Aug. 22 Purchased 50,000 shares of Company Y common stock for $375,000 plus a brokerage fee of $1,200. The shares represent a 51% ownership in Company Y.
Nov. 13 Purchased 8,500 shares of Company Z common stock for $267,900 plus a brokerage fee of $2,450. The shares represent a 5% ownership in Company Z.
Dec. 9 Sold 40,000 shares of Company A common stock for $515,000 less a brokerage fee of $4,100.
The fair values of its investments at December 31, 2015, are:
| |
Fair Value |
| B |
$ |
81,375 |
| C |
$ |
610,312 |
| W |
$ |
191,250 |
| X |
$ |
118,125 |
| Y |
$ |
531,250 |
| Z |
$ |
278,800 |
1. value: 10.00 points Required information
1&2. Determine the amount Stoll should report on its December 31, 2015, balance sheet for its long-term investments in available-for-sale securities. and Prepare any necessary December 31, 2015, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.
References WorksheetLearning Objective: 15-C2 Describe how to report equity securities with controlling influence.Learning Objective: 15-P4 Account for equity securities with significant influence.Difficulty: 3 HardLearning Objective: 15-P3 Account for available-for-sale securities.Check my work
2. value: 10.00 points Required information
3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale securities should Stoll report on its December 31, 2015, income statement?
References WorksheetLearning Objective: 15-C2 Describe how to report equity securities with controlling influence.Learning Objective: 15-P4 Account for equity securities with significant influence.Difficulty: 3 HardLearning Objective: 15-P3 Account for available-for-sale securities.Check my work
3. value: 10.00 points Required information
1&2. Determine the amount Stoll should report on its December 31, 2015, balance sheet for its long-term investments in available-for-sale securities. and Prepare any necessary December 31, 2015, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.
References WorksheetLearning Objective: 15-C2 Describe how to report equity securities with controlling influence.Learning Objective: 15-P4 Account for equity securities with significant influence.Difficulty: 3 HardLearning Objective: 15-P3 Account for available-for-sale securities.Check my work
4. value: 10.00 points Required information
3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale securities should Stoll report on its December 31, 2015, income statement?