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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 8,000 shares of Gem Company stock at $29.25 per share. Purchased 4,000 shares of PepsiCo stock at $53.00 per share. Purchased 2,000 shares of Xerox stock at $16.00 per share. July 7 July 20 August 15 Received a $0.05 per share cash dividend on the Gen Company stock. August 28 Sold 4,000 shares of Gen Company stock at $36.00 per share. October 1 Received a $1.70 per share cash dividend on the PepsiCo shares. December 15 Received a $1.00 per share cash dividend on the remaining Gen 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, $31.50; PepsiCo, $50.25; and Xerox, $13.00.

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 8,000 shares of Gem Company stock at $29.25 per share. Purchased 4,000 shares of PepsiCo stock at $53.00 per share. Purchased 2,000 shares of Xerox stock at $16.00 per share. July 7 July 20 August 15 Received a $0.05 per share cash dividend on the Gen Company stock. August 28 Sold 4,000 shares of Gen Company stock at $36.00 per share. October 1 Received a $1.70 per share cash dividend on the PepsiCo shares. December 15 Received a $1.00 per share cash dividend on the remaining Gen 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, $31.50; PepsiCo, $50.25; and Xerox, $13.00.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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0 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 8,000 shares of Gem Company stock at $29.25 per share. July 7 Purchased 4,000 shares of PepsiCo stock at $53.00 per share. July 20 Purchased 2,000 shares of Xerox stock at $16.00 per share. August 15 Received a $0.85 per share cash dividend on the Gem Company stock. August 28 Sold 4,000 shares of Gem Company stock at $36.00 per share. October 1 Received a $1.70 per share cash dividend on the PepsiCo shares. December 15 Received a $1.00 per share cash dividend on the remaining Gen 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, $31.50; PepsiCo, $50.25; and Xerox, $13.00. Required: 1. Prepare journal entries to record the preceding transactions and events. Required information No 1 2 3 4 5 6 7 8 Date April 16 July 07 July 20 August 15 August 28 October 01 December 15 December 31 Cash Cash Cash Cash Cash Stock investments Gain on sale of stock investments Cash Dividend revenue Cash General Journal Dividend revenue Unrealized loss -Income 8 x 000 33 >> Ⓡ Debit 234,000 212,000 32,000 6,800 144,000 6,800 - 4,000 5.200 3 Credit 6,800 4,000
Transcribed Image Text:0 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 8,000 shares of Gem Company stock at $29.25 per share. July 7 Purchased 4,000 shares of PepsiCo stock at $53.00 per share. July 20 Purchased 2,000 shares of Xerox stock at $16.00 per share. August 15 Received a $0.85 per share cash dividend on the Gem Company stock. August 28 Sold 4,000 shares of Gem Company stock at $36.00 per share. October 1 Received a $1.70 per share cash dividend on the PepsiCo shares. December 15 Received a $1.00 per share cash dividend on the remaining Gen 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, $31.50; PepsiCo, $50.25; and Xerox, $13.00. Required: 1. Prepare journal entries to record the preceding transactions and events. Required information No 1 2 3 4 5 6 7 8 Date April 16 July 07 July 20 August 15 August 28 October 01 December 15 December 31 Cash Cash Cash Cash Cash Stock investments Gain on sale of stock investments Cash Dividend revenue Cash General Journal Dividend revenue Unrealized loss -Income 8 x 000 33 >> Ⓡ Debit 234,000 212,000 32,000 6,800 144,000 6,800 - 4,000 5.200 3 Credit 6,800 4,000
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