ACCOUNTING PROCESS ASSIGNMENT: PART #2 Year-End Adiustments Fact Sets: 1. The balance of cash equivalents in the unadjusted trial balance at December 31, 2016 represents Page 4 of 11 the principal (approximates the investment's fair value) that Ninatori Fashion Supply Corp invested in a three-month debt security on December 1, 2017. The security pays interest at an annual rate of 5.4% at maturity. Prepare the necessary adjusting entry at December 31, 2017 to properly recognize amounts relating to the short-term investment under GAAP. DEBIT CREDIT DATE ACCOUNT NAMES Supporting Calculation