D21 L > Calibri fx A B B C E Merge Currency F 1 2 On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. 3 4 5 Available-for-Sale Securities Cost Fair Value 6 Verrizano Corporation bonds 7 Preble Corporation notes 8 Lucerne Company bonds $89,600 70,600 86,500 $91,600 62,900 83,100 9 10 Required: 11 1. Computation of fair value adjustment. 12 G 13 (Use cells A5 to C8 from the given information to complete this question. Negative amounts or amounts to be deducted should be 14 Input and displayed as negative values.) 15 16 Fair Value Adjustment Computation - Available for Sale Portfolio Unrealized 17 Cost Fair Value Amount 18 Verrizano Corporation bonds 19 Preble Corporation notes 20 Lucerne Company bonds 21 Total 22 $89,600 70,600 86,500 $91,600 62,900 83,100 $246,700 $237,600 23 2. Prepare the December 31 adjusting entry to report these investments at fair value. 24 25 (Use cells A5 to C8, as well as the "Chart of Accounts" tab for cell referencing and/or formulas needed to complete this question.) 26 27 28 29 30 Date 31-Dec General Journal Debit Credit