5. Identify the dollar increase or decrease from Rose's short-term stock investments on (a) its income statement for this year and (b) equity section of its balance sheet at this year-end. (a) Income statement for this year (b) The equity section of its balance sheet at this year-end Amount Increase or Decrease
5. Identify the dollar increase or decrease from Rose's short-term stock investments on (a) its income statement for this year and (b) equity section of its balance sheet at this year-end. (a) Income statement for this year (b) The equity section of its balance sheet at this year-end Amount Increase or Decrease
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence
LO P4
[The following information applies to the questions displayed below.]
Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short-
term stock investments with insignificant influence.
April 16 Purchased 6,000 shares of Gem Company stock at $29.25 per share.
July 7 Purchased 3,000 shares of PepsiCo stock at $51.00 per share.
July 20 Purchased 1,500 shares of Xerox stock at $18.00 per share.
August 15 Received a $0.85 per share cash dividend on the Gem Company stock.
August 28 Sold 3,000 shares of Gem Company stock at $36.00 per share.
October 1 Received a $1.90 per share cash dividend on the PepsiCo shares.
December 15 Received a $1.00 per share cash dividend on the remaining Gem Company shares.
December 31 Received a $1.25 per share cash dividend on the PepsiCo shares.
The year-end fair values per share are Gem Company, $31.50; PepsiCo, $48.25; and Xerox, $15.00.
Problem 15-4A (Algo) Part 5
5. Identify the dollar increase or decrease from Rose's short-term stock investments on (a) its income statement for this year and (b) the
equity section of its balance sheet at this year-end.
(a) Income statement for this year
(b) The equity section of its balance sheet at this year-end
Amount
Increase or Decrease](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F89b9af60-66c8-4d93-a3e3-faf450b0afaf%2Fc6b380bb-c51d-415e-9067-86fc98691a33%2Fkznsuzh8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence
LO P4
[The following information applies to the questions displayed below.]
Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short-
term stock investments with insignificant influence.
April 16 Purchased 6,000 shares of Gem Company stock at $29.25 per share.
July 7 Purchased 3,000 shares of PepsiCo stock at $51.00 per share.
July 20 Purchased 1,500 shares of Xerox stock at $18.00 per share.
August 15 Received a $0.85 per share cash dividend on the Gem Company stock.
August 28 Sold 3,000 shares of Gem Company stock at $36.00 per share.
October 1 Received a $1.90 per share cash dividend on the PepsiCo shares.
December 15 Received a $1.00 per share cash dividend on the remaining Gem Company shares.
December 31 Received a $1.25 per share cash dividend on the PepsiCo shares.
The year-end fair values per share are Gem Company, $31.50; PepsiCo, $48.25; and Xerox, $15.00.
Problem 15-4A (Algo) Part 5
5. Identify the dollar increase or decrease from Rose's short-term stock investments on (a) its income statement for this year and (b) the
equity section of its balance sheet at this year-end.
(a) Income statement for this year
(b) The equity section of its balance sheet at this year-end
Amount
Increase or Decrease
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