in iii Problem 15-4A Recording, adjusting, and reporting stock investments with insignificant influence P4 Rose Company...

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in iii Problem 15-4A Recording, adjusting, and reporting stock investments with insignificant influence P4 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. Received a $1.00 per share cash dividend on the remaining Gem Co. Dec. 15 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. Check (2) Cost $150,000 3. Prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments. (3) Dr. Unrealized Loss-Income, $6,000 Analysis Component 4. Explain the balance sheet presentation of the fair value adjustment for Rose's short-term investments. 5. How do these short-term stock investments affect Rose's (a) income statement for this year and (b) the equity section of its balance sheet at this year-end? in iii Problem 15-4A Recording, adjusting, and reporting stock investments with insignificant influence P4 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. Received a $1.00 per share cash dividend on the remaining Gem Co. Dec. 15 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. Check (2) Cost $150,000 3. Prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments. (3) Dr. Unrealized Loss-Income, $6,000 Analysis Component 4. Explain the balance sheet presentation of the fair value adjustment for Rose's short-term investments. 5. How do these short-term stock investments affect Rose's (a) income statement for this year and (b) the equity section of its balance sheet at this year-end?