Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence LO P4 [The following...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence LO 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 10,000 shares of Gem Company stock at $25.75 per share. July 7 Purchased 5,000 shares of PepsiCo stock at $52.00 per share. July 20 Purchased 2,500 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 5,000 shares of Gem 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, $49.25; 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 Increase Increase Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence LO 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 10,000 shares of Gem Company stock at $25.75 per share. July 7 Purchased 5,000 shares of PepsiCo stock at $52.00 per share. July 20 Purchased 2,500 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 5,000 shares of Gem 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, $49.25; and Xerox, $16.00. Problem 15-4A (Algo) Part 5 5. Identify the dollar increase or decrease from Rose's short-term stock investments on (a) its income statement for this year and (b) the equity section of its balance sheet at this year-end. (a) Income statement for this year (b) The equity section of its balance sheet at this year-end Amount Increase or Decrease Increase Increase
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
A company has a proposed 2-year project with the cash flows shown below and would like to calculate the NPV of this project so that they can decide whether to pursue the project or not. The company...
-
Hello, my name is Regina and I have 2 questions. 1. Explain how you apply Empathy and Belonging to families of students? This is a question in my School as a Community of Care, SOE Professional...
-
JAZ Medical Supplies is implementing a new economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO); i.e, the order cost Co. It...
-
The following list shows the top six pharmaceutical companies in the United States and their sales figures ($ millions) for a recent year. Use this information to construct a pie chart and a bar...
-
Businesses with severe capital rationing constraints should use IRR more than NPV. Do you agree? Explain.
-
Find the function represented by the given power series. x2n+1 E(-1)" 22n+ (2n + 1) n+1, n=0
-
The basic concept behind a learning organization is: A. The popularity to change. B. The people change. C. The adaptation to change. D. The resources of change.
-
Yamada Industries is considering selling excess machinery with a book value of $220,000 (original cost of $600,000 less accumulated depreciation of $380,000) for $200,000, less a 6% brokerage...
-
A debit of $5,000 to F. Crane, capital would result because of: ANSWER Unselected closing Income Summary as a result of $11,000 of revenues and $6,000 of expenses. Unselected net income of $5,000....
-
WK 6 Profit Forecast WORKSHEET - SOURCES AND USES OF FUNDS The amount of cash you will need to cover start-up expenses and to cover operating expenses until the company attains profitably is the...
-
During manufacture, Stephen notices the indicator light on one of the machines in the assembly line flashing red. He immediately recognizes this as an indication of a problem with the machine and...
-
Century - Fox Corporation s employees are eligible for postretirement health care benefits after both being employed at the end of the year in which age 6 0 is attained and having worked 2 0 years....
-
Oakey Wines has the option to lease a filling machine for the bottling of exclusive varieties that are sold in smaller volumes and require unique bottles. There are 3 options available to Oakey...
-
Design a Rust program to create a multi-threaded TCP server that can handle multiple client connections simultaneously and perform basic file I/O operations.
-
e) Evaluate It 15 f) Find distance between the points (6,-3) and (2,1) 1-11 g) Find the value of determinant A= 2 -1 1 3 2
-
Compute the realized and recognized gain or loss and the new basis in the following transactions, all of which took place pursuant to a plan of recapitalization. a. A shareholder exchanged 100 shares...
-
A firm offers two products for sale. The marginal cost of one product is new zero once the first unit has been produced. The marginal cost of the other product rises as output rises. What would be...
-
Preferred stock that may be converted into common stock has which of the following characteristics? a. Call feature b. Cumulative feature c. Participation feature d. Convertible feature
-
A dividend that is paid every quarter or every year is called? a. Regular dividend b. Special dividend c. Property dividend d. Stock dividend
-
What is the meaning of each of the following terms: corporation, articles of incorporation, corporate charter, board of directors, corporate officers, and organization costs?
Study smarter with the SolutionInn App