Question

Problem C-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 availiable-for-sale portfolio at December 31, 2014, consists of the following Cost Fair Value $1040,600 40,000 shares of Company A common stock 30,000 shares of Company B common stock $930,000 330,000 340750 5,000 shares of Compeny C common stock 1,364,000 1,314,875 Stoll enters Into the following long-term investment transactions during year 2015 Jan 29 Sold 15,000 shares of Company B common stock for $169,375 less a brokerage fee of $3,500 Apr. 17 Purchased 21,000 shares of Company W common stock for $450,000 plus a brokerage fee of S3.200. The shares represent a 30% ownership in Company w 3,200. The shares represent a 10% ownership in Company X, $8,000 The shares represent a 51% ownership in Company Y $6,000. The shares represent a 5% ownership in Company Sold 40,000 shares of Company A common stock for $1,028000 less a brokerage fee of $4,100 July 6 Purchased 9,000 shares of Company X common stock for $258,625 plus a brokerage fee of es of Company Y common stock for $600,000 plus a brokerage fee of Nov. 13 Purchased 13,000 shares of Compeny Z common stock for $528.300 plus a brokerage fee of Dec 9 The fair values of ts investments at December 31, 2015, are Fair Value B $ 168.250 C $ 1,226,125 W $ 388,000 x 241750 Y $1068,000 Z $ 563,100

Answer 1

Answer 1.
Dec 31, 2014	No. of Shares	Cost	Fair Value	Difference
Company A	40,000	1,040,600.00	930,000.00	(110,600.00)
Company B	30,000	340,750.00	330,000.00	(10,750.00)
Company C	35,000	1,364,000.00	1,314,875.00	(49,125.00)
Total		2,745,350.00	2,574,875.00	(170,475.00)
Dec 31, 2015	No. of Shares	Cost	Fair Value	Difference
Company B	15,000	170,375.00	168,250.00	(2,125.00)
Company C	35,000	1,364,000.00	1,226,125.00	(137,875.00)
Company X	9,000	261,825.00	241,750.00	(20,075.00)
Company Z	13,000	534,300.00	563,100.00	28,800.00
Total		2,330,500.00	2,199,225.00	(131,275.00)
Less - 2016 Unrealises Loss				(170,475.00)
Net Unrealized Gain				39,200.00

Answer 2.
Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
31-Dec-17	Fair Value Adjustment (AFS - Long Term)	39,200.00
	Unrealized Loss Equity		39,200.00

Answer 3.
Company B
Sale of 15,000 Shares - 169,375 - $3,500	165,875
Cost of 7,000 Shares - $340,750 X (15,000/30,000)	170,375
Gain (Loss) on sale of Shares		(4,500.00)
Company A
Sale of 40,000 Shares - $1,028,000 - $4,100	1,023,900
Cost of 40,000 Shares	1,040,600
Gain (Loss) on sale of Shares		(16,700.00)
Total Gain(Loss) on sale of shares		(21,200.00)