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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 6,000 shares of Gem Company stock at $25.50 per share. July 7 Purchased 3,000 shares of PepsiCo stock at $47.00 per share. Purchased 1,500 shares of Xerox stock at $19.00 per share. July 20 August 15 Received a $0.95 per share cash dividend on the Gem Company stock. August 28 Sold 3,000 shares of Gem Company stock at $32.25 per share. October 1 Received a $2.00 per December 15 Received a $1.10 per share cash dividend on the PepsiCo shares. 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, $27.75; PepsiCo, $44.25; and Xerox, $16.00. 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.

[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 $25.50 per share. July 7 Purchased 3,000 shares of PepsiCo stock at $47.00 per share. Purchased 1,500 shares of Xerox stock at $19.00 per share. July 20 August 15 Received a $0.95 per share cash dividend on the Gem Company stock. August 28 Sold 3,000 shares of Gem Company stock at $32.25 per share. October 1 Received a $2.00 per December 15 Received a $1.10 per share cash dividend on the PepsiCo shares. 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, $27.75; PepsiCo, $44.25; and Xerox, $16.00. 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.

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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LU 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 $25.50 per share. July 7 Purchased 3,000 shares of PepsiCo stock at $47.00 per share. July 20 Purchased 1,500 shares of Xerox stock at $19.00 per share. August 15 Received a $0.95 per share cash dividend on the Gem Company stock. August 28 Sold 3,000 shares of Gem Company stock at $32.25 per share. Received a $2.00 per October 1 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, $27.75; PepsiCo, $44.25; and Xerox, $16.00. 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 39,150 Increase Increase
Transcribed Image Text:LU 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 $25.50 per share. July 7 Purchased 3,000 shares of PepsiCo stock at $47.00 per share. July 20 Purchased 1,500 shares of Xerox stock at $19.00 per share. August 15 Received a $0.95 per share cash dividend on the Gem Company stock. August 28 Sold 3,000 shares of Gem Company stock at $32.25 per share. Received a $2.00 per October 1 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, $27.75; PepsiCo, $44.25; and Xerox, $16.00. 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 39,150 Increase Increase
Required information 1 1 2 3 4 6 7 8 April 16 July 07 July 20 August 15 October 01 December 15 December 31 WYTIVEME SULTIMI Debt investments - Available-for-sale Cash Debt investments - Available-for-sale Cash Debt investments - Available-for-sale Cash Cash Debt investments - Held-to-maturity Cash Fair value adjustment - Available-for-sale Cash Fair value adjustment - Stock Cash Fair value adjustment - Stock 153,000 141,000 28,500 5,700 6,000 3,300 3,900 153,000 141,000 28,500 5,700 6,000 3,300 3,900
Transcribed Image Text:Required information 1 1 2 3 4 6 7 8 April 16 July 07 July 20 August 15 October 01 December 15 December 31 WYTIVEME SULTIMI Debt investments - Available-for-sale Cash Debt investments - Available-for-sale Cash Debt investments - Available-for-sale Cash Cash Debt investments - Held-to-maturity Cash Fair value adjustment - Available-for-sale Cash Fair value adjustment - Stock Cash Fair value adjustment - Stock 153,000 141,000 28,500 5,700 6,000 3,300 3,900 153,000 141,000 28,500 5,700 6,000 3,300 3,900
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