Late in the current year, Nafta Corporation bought 3,000 shares of Boeing common stock at \(\$ 37.375,600\) shares of Anheuser-Busch stock at \(\$ 46.75\), and 1,400 shares of Hitachi stock at \$79-all as trading investments. At December 31, The Wall Street fournal reports Boeing stock at \(\$ 39.125\), Anheuser-Busch at \(\$ 48.50\), and Hitachi at \(\$ 68.25\).

\section*{Required}

1. Compute the cost and the market value of the short-term investment portfolio at December 31.

2. Journalize any adjusting entry needed at December 31 .

3. Report the balance sheet and the income statement effects of the information given.