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.
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 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e1846c8-5e00-430b-a6ce-0d2e2930047a%2F3c189fa2-77c5-4c51-8202-04b9b43a1648%2F62quems_processed.jpeg&w=3840&q=75)
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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