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