Required information [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 10,000 shares of Gem Company stock at $21.25 per share. July 20 July 7 Purchased 5,000 shares of PepsiCo stock at $53.00 per share. Purchased 2,500 shares of Xerox stock at $17.00 per share. August 15 Received a $0.85 per share cash dividend on the Gem Company stock. August 28 Sold 5,000 shares of Gen Company stock at $28.00 per share. October 1 Received a December 15 Received a $1.00 per share cash dividend on the remaining Gem Company shares. December 31 Received a $1.30 per share cash dividend on the PepsiCo shares. $1.90 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $23.50; PepsiCo, $50.25; and Xerox, $14.00. 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
Required information [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 10,000 shares of Gem Company stock at $21.25 per share. July 20 July 7 Purchased 5,000 shares of PepsiCo stock at $53.00 per share. Purchased 2,500 shares of Xerox stock at $17.00 per share. August 15 Received a $0.85 per share cash dividend on the Gem Company stock. August 28 Sold 5,000 shares of Gen Company stock at $28.00 per share. October 1 Received a December 15 Received a $1.00 per share cash dividend on the remaining Gem Company shares. December 31 Received a $1.30 per share cash dividend on the PepsiCo shares. $1.90 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $23.50; PepsiCo, $50.25; and Xerox, $14.00. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[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 10,000 shares of Gem Company stock at $21.25 per share.
July 7
Purchased 5,000 shares of PepsiCo stock at $53.00 per share.
Purchased 2,500 shares of Xerox stock at $17.00 per share.
July 20
August 15
August 28 Sold 5,000
October 1 Received a
December 15 Received a
Received a $0.85 per share cash dividend on the Gem Company stock.
shares of Gen Company stock at $28.00 per share.
$1.90 per share cash dividend on the PepsiCo shares.
$1.00 per share cash dividend on the remaining Gem Company shares.
December 31 Received a $1.30 per share cash dividend on the PepsiCo shares.
The year-end fair values per share are Gem Company, $23.50; PepsiCo, $50.25; and Xerox, $14.00.
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%2Fe407a423-3f41-421e-803d-cf16050a22fd%2Ff3f2c5d8-8480-454b-8716-1de7485832fa%2F7db14i57_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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 10,000 shares of Gem Company stock at $21.25 per share.
July 7
Purchased 5,000 shares of PepsiCo stock at $53.00 per share.
Purchased 2,500 shares of Xerox stock at $17.00 per share.
July 20
August 15
August 28 Sold 5,000
October 1 Received a
December 15 Received a
Received a $0.85 per share cash dividend on the Gem Company stock.
shares of Gen Company stock at $28.00 per share.
$1.90 per share cash dividend on the PepsiCo shares.
$1.00 per share cash dividend on the remaining Gem Company shares.
December 31 Received a $1.30 per share cash dividend on the PepsiCo shares.
The year-end fair values per share are Gem Company, $23.50; PepsiCo, $50.25; and Xerox, $14.00.
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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