Accounting HW for accountsguru

Problem 1

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.

Problem 2

Desi of New York sells its products to customers in the United States and the United Kingdom. On December 16, 2011, Desi sold merchandise on credit to Bronson Ltd. of London at a price of 17,000 pounds. The exchange rate on that day for £1 was $1.5238. On December 31, 2011, when Desi prepared its financial statements, the rate was £1 for $1.4990. Bronson paid its bill in full on January 15, 2012, at which time the exchange rate was £1 for $1.5156. Desi immediately exchanged the 17,000 pounds for U.S. dollars. Prepare Desi’s journal entries on December 16, December 16, December 31, and January 15 (round to the nearest dollar).