Prepare adjusting entry to report investments at fair value

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Question: 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

Reference no: EM131534914

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