Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost Fair Value 80,000 shares...

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Accounting

Stoll Co.’s long-term available-for-sale portfolio at December31, 2016, consists of the following.
Available-for-Sale Securities Cost Fair Value
80,000 shares of Company A common stock $ 1,039,600 $ 920,000
28,000 shares of Company B common stock 338,750 328,000
34,000 shares of Company C common stock 1,360,500 1,311,875
Stoll enters into the following long-term investmenttransactions during year 2017.
Jan. 29 Sold 14,000 shares of Company B common stock for $168,375 lessa brokerage fee of $3,400.
Apr. 17 Purchased 21,000 shares of Company W common stock for $445,000plus a brokerage fee of $3,100. The shares represent a 30%ownership in Company W.
July 6 Purchased 8,000 shares of Company X common stock for $258,125plus a brokerage fee of $3,100. The shares represent a 12%ownership in Company X.
Aug. 22 Purchased 100,000 shares of Company Y common stock for $590,000plus a brokerage fee of $7,900. The shares represent a 51%ownership in Company Y.
Nov. 13 Purchased 12,000 shares of Company Z common stock for $528,800plus a brokerage fee of $5,900. The shares represent a 5% ownershipin Company Z.
Dec. 9 Sold 80,000 shares of Company A common stock for $1,027,500less a brokerage fee of $4,100.

The fair values of its investments at December 31, 2017, are: B,$167,750; C, $1,225,625; W, $387,500; X, $241,250; Y, $1,067,500;and Z, 562,600.
Problem 15-5A Part 1 and 2
Required:
1. Determine the amount Stoll should report on itsDecember 31, 2017, balance sheet for its long-term investments inavailable-for-sale securities.
2. Prepare any necessary December 31, 2017,adjusting entry to record the fair value adjustment for thelong-term investments in available-for-sale securities.
3. What amount of gains or losses ontransactions relating to long-term investments inavailable-for-sale securities should Stoll report on its December31, 2017, income statement?
Fair Value Adjustment Computation -Available-for-Sale Securities
December 31, 2017 AFS Securities # of shares Cost Fair Value Unrealized Amount
Total
-1
Record the year-end adjusting entry for the securitiesportfolio as of December 31, 2017.
Note: Enter debits before credits.
Date General Journal Debit Credit
Dec 31

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Please hit LIKE button if this helped For any further explanation please put your query in comment will get back to you Part 1 Availableforsale securities on December 31 2017 Security Cost Fair Value 14000 shares of Company B common stock 3387502 16937500 16775000 34000 shares See Answer

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Available-for-Sale Securities	Cost		Fair Value
80,000 shares of Company A common stock	$	1,039,600	$	920,000
28,000 shares of Company B common stock		338,750		328,000
34,000 shares of Company C common stock		1,360,500		1,311,875

Jan.	29	Sold 14,000 shares of Company B common stock for $168,375 lessa brokerage fee of $3,400.
Apr.	17	Purchased 21,000 shares of Company W common stock for $445,000plus a brokerage fee of $3,100. The shares represent a 30%ownership in Company W.
July	6	Purchased 8,000 shares of Company X common stock for $258,125plus a brokerage fee of $3,100. The shares represent a 12%ownership in Company X.
Aug.	22	Purchased 100,000 shares of Company Y common stock for $590,000plus a brokerage fee of $7,900. The shares represent a 51%ownership in Company Y.
Nov.	13	Purchased 12,000 shares of Company Z common stock for $528,800plus a brokerage fee of $5,900. The shares represent a 5% ownershipin Company Z.
Dec.	9	Sold 80,000 shares of Company A common stock for $1,027,500less a brokerage fee of $4,100.