Problem:
On December 31, 2011, Rollo Company held the following short-term investments in its portfolio of available-for-sale securities. Rollo had no short-term investments in its prior accounting periods. Prepare the December 31, 2011, adjusting entry to report these investments at fair value.
|
|
Cost
|
Fair Value
|
|
Vicks Corporation bonds payable
|
$79,600
|
$90,600
|
|
Pace Corporation notes payable
|
60,600
|
52,900
|
|
Lake Lugano Company common stock
|
85,500
|
82,100
|