Adjusting entry to report these investments at fair value
Not what you're looking for?
Problem attached
15-7 - 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
Purchase this Solution
Solution Summary
The expert examines adjusting entries to report the investments at a fair value.
Solution Preview
Dear student,
Solution is provided in a separate excel file attached.It contains the following parts.
1 Valuation of Temporary Investments portfolio as per cost or market value rule.
2 (b) Adjusting entry on Dec 31, 2011
3 Notes:
(1)The LCM rule ...
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.