ALLOWANCES FOR SHORT-TERM INVESTMENTS. For each of the cases described below, prepare the adjusting entry required at year-end (if any) to the allowance to adjust short-term investments to market. Assume that each case represents a different company and that all securities are held “available for sale.”

Transcribed Image Text:

Allowance to adjust short-term investments to market (balance at 12/31 before adjustment, credits in CASE 1 CASE 2 CASE 3 CASE 4 parentheses) $-0- Cost of short-term investment portfolio. Market value of short-term investment 9,000 $-0- 21,500 $ (8,200) $ 1,100 45,200 65,100 portfolio 8,050. 23,700 46,500 64,200