[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 $21.25 per share. July 7 Purchased 4,000 shares of PepsiCo stock at $50.00 per share. July 20 Purchased 2,000 shares of Xerox stock at $15.00 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 $28.00 per share. October 1 Received a $2.00 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, $23.50; PepsiCo, $47.25; and Xerox, $12.00. Problem 15-4A (Algo) Part 2 2. Prepare a table to compare the year-end cost and fair values of Rose's short-term stock investments. Comparison of Cost and Fair Values for Stock Investments Portfolio at Year-End Gem Company PepsiCo Xerox Total Cost Fair Value Unrealized Amount

[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 $21.25 per share. July 7 Purchased 4,000 shares of PepsiCo stock at $50.00 per share. July 20 Purchased 2,000 shares of Xerox stock at $15.00 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 $28.00 per share. October 1 Received a $2.00 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, $23.50; PepsiCo, $47.25; and Xerox, $12.00. Problem 15-4A (Algo) Part 2 2. Prepare a table to compare the year-end cost and fair values of Rose's short-term stock investments. Comparison of Cost and Fair Values for Stock Investments Portfolio at Year-End Gem Company PepsiCo Xerox Total Cost Fair Value Unrealized Amount

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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[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 3,500 shares of Gem Company stock at $24 per share. Purchased 2,000 shares of PepsiCo stock at $49 per share. July 7 July 20 Purchased 1,000 shares of Xerox stock at $16 per share. August 15 Received a $1.00 per share cash dividend on the Gem Company stock. August 28 Sold 2,000 shares of Gem Company stock at $30 per share. October 1 Received a $2.50 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 $1.50 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13. 4. Prepare the current asset section of the balance sheet for the fair value…
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 3,500 shares of Gem Company stock at $24 per share. July 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. July 20 Purchased 1,000 shares of Xerox stock at $16 per share. August 15 Received a $1.00 per share cash dividend on the Gem Company stock. August 28 Sold 2,000 shares of Gem Company stock at $30 per share. October 1 Received a $2.50 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 $1.50 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13. 4. Prepare the current asset section of the balance sheet for the fair value adjustment for Rose’s short-term investments.
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 3,500 shares of Gem Company stock at $24 per share. Purchased 2,000 shares of PepsiCo stock at $49 per share. July 7 July 20 Purchased 1,000 shares of Xerox stock at $16 per share. August 15 Received a $1.00 per share cash dividend on the Gem Company stock. August 28 Sold 2,000 shares of Gem Company stock at $30 per share. October 1 Received a $2.50 per December 15 Received a $1.00 per share cash dividend on the PepsiCo shares. share cash dividend on the remaining Gem Company shares. December 31 Received a $1.50 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13. 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…
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. Apr. 16 Purchased 3,500 shares of Gem Co. stock at $24 per share. July 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. 20 Purchased 1,000 shares of Xerox stock at $16 per share. Aug. 15 Received a $1.00 per share cash dividend on the Gem Co. stock. 28 Sold 2,000 shares of Gem Co. stock at $30 per share. Oct. 1 Received a $2.50 per share cash dividend on the PepsiCo shares. Dec. 15 Received a $1.00 per share cash dividend on the remaining Gem Co. shares. 31 Received a $1.50 per share cash dividend on the PepsiCo shares. Required 1. Prepare journal entries to record the preceding transactions and events. 2. Prepare a table to compare the year-end cost and fair values of Rose’s short-term stock investments. The year-end fair values per share are Gem Co., $26; PepsiCo, $46; and Xerox, $13. 3. Prepare an…
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 3,500 shares of Gem Company stock at $24 per share. July 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. Purchased 1,000 shares of Xerox stock at $16 per share. July 20 August 15 Received a $1.00 per share cash dividend on the Gem Company stock. August 28 Sold 2,000 shares of Gem Company stock at $30 per share. $2.50 per share cash dividend on the PepsiCo shares. October 1 Received a December 15 Received a $1.00 per share cash dividend on the remaining Gem Company shares. dividend on the PepsiCo shares. December 31 Received a $1.50 per share cash The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13.
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 3,500 shares of Gem Company stock at $24 per share. July 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. Purchased 1,000 shares of Xerox stock at $16 per share. July 20 August 15 Received a $1.00 per share cash dividend on the Gem Company stock. August 28 Sold 2,000 shares of Gem Company stock at $30 per share. share cash dividend on the PepsiCo shares. October 1 Received a $2.50 per December 15 Received a $1.00 per share cash dividend on the remaining Gem Company shares. December 31 Received a $1.50 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13. 2. Prepare a table to compare the year-end cost and fair values of Rose's short-term stock investments. Comparison of Cost and Fair Values for Stock…
Rose Company had no-short investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence. April 16 Purchased 3,500 shares of Gem Company stock at $24 per share. July 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. July 20 Purchased 1,000 shares of Xerox stock at $16 per share. August 15 Received a $1.00 per share cash dividend on the PepsiCo shares. August 28 Sold 2,000 shares of Gem Company stock at $30 per share. October 1 Received a $2.50 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 $1.50 per share cash dividend on the pepsi shares. The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13. Prepare the current asset section of the balance sheet for the fair value adjustment for Rose's short-term investments. Note: Amounts to be deducted should be…
Rose Company had no short-term investments prior to this yearIt 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 $25.75 per share. July 7 Purchased 3,000 shares of PepsiCo stock at $46.00 per share. July 20 Purchased 1,500 shares of Xerox stock at $19.00 per share. August 15 Received a 8.95 per share cash dividend on the Gem Company stock. August 28 Sold 3,000 shares of Company stock at $32.50 per share. October 1 Received a $2.00 per share cash dividend on the PepsiCo shares. December 15 Received a $1.10 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$28.00 PepsiCo, 43.25and Xerox, $16.00 Required: Prepare journal entries to record the preceding transactions and events.
Slip Systems had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence. Feb. 6 Purchased 3,400 shares of Nokia stock at $41 per share. Apr. 7 Purchased 1,200 shares of Dell stock at $39 per share. June 2 Purchased 2,500 shares of Merck stock at $72 per share. 30 Received a $1.00 per share cash dividend on the Nokia shares. Aug. 11 Sold 850 shares of Nokia stock at $46 per share. 24 Received a $0.10 per share cash dividend on the Dell shares. Nov. 9 Received a $1.50 per share cash dividend on the remaining Nokia shares. Dec. 18 Received a $0.15 per share cash dividend on the Dell shares. Required 1. Prepare journal entries to record the preceding transactions and events. 2. Prepare a table to compare the year-end cost and fair values of the short-term stock investments. The year-end fair values per share are Nokia, $40; Dell, $41; and Merck, $59. 3. Prepare an adjusting entry, if…
Eco Corporation 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 4,000 shares of Ontario Company stock at $26 per share. July 7 Purchased 2,500 shares of Van Company stock at $51 per share. July 20 Purchased 1,200 shares of Twinings Company stock at $18 per share. August 15 Received an $1.00 per share cash dividend on the Ontario Company stock. August 28 Sold 2,400 shares of Ontario Company stock at $29 per share. October 1 Received a $3.10 per share cash dividend on the Van Company shares. December 15 Received a $1.20 per share cash dividend on the remaining Ontario Company shares. December 31 Received a $2.50 per share cash dividend on the Van Company shares.
Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.] Selk Steel Company, which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1 January 5 Selk purchased 45,000 shares (20% of total) of Kildaire's common stock for $1,080,000. October 23 Kildaire declared and paid a cash dividend of $2.90 per share. December 31 Kildaire's net income for the year is $1,111,000, and the fair value of its stock at December 31 is $32 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $2.60 per share. December 31 Kildaire's net income for the year is $1,139,000, and the fair value of its stock at December 31 is $34 per share. Year 3 January 2 Selk sold 3% (equal to 1,350 shares) of its investment in Kildaire for $69,500 cash. Problem C-5A (Algo) Accounting for long-term investments in stock with significant influence LO P5 Required: Prepare journal…
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