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Problem $15-3$A $($Algo$)$ Debt investments in available$-$for$-$sale securities; unrealized and realized gains and losses LO P$3$

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Stoll Company's long$-$term available$-$for$-$sale portfolio at the start of this year consists of the following.

Available$-$for$-$Sale SecuritiesCostFair ValueCompany A bonds$ $530,500$$ $495,000$Company B notes$159,080147,000$Company C bonds$663,000648,390$

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 $$78,170.$July $6$Purchased Company X bonds for $$127,000.$November $13$Purchased Company Z notes for $$267,500.$December $9$Sold all of the Company A bonds for $$517,400.$

Fair values at December $31$ are B$,$ $$80,600$ C$,$ $$600,800$ X$,$ $$120,000$ and Z$,$ $$279,000.$

Problem $15-3$A $($Algo$)$ Part $1$ and $2$

Required:

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$.$

Determine the amount Stoll reports on its December $31$ balance sheet for its long$-$term investments in available$-$for$-$sale securities$.$