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Question - On dec 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.
Vicks Corporation bonds payable Cost:$79,600 Fair Value: $90,600
Pace Corporation notes payable Cost: $60,600 Fair Value $52,900
Lake Lugano Company Common Stock Cost: $85,500 Fair Value: $82,100
Prepare the December 31,2011 adjusting entry to report these investments at fair value.
Whats the debit and credit and please explain. Thank you!
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