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Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence LO P4 Skip to question [The following information applies to the questions displayed
Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence LO P4
Skip to question[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 $28.00 per share. |
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July 7 | Purchased 3,000 shares of PepsiCo stock at $45.00 per share. |
July 20 | Purchased 1,500 shares of Xerox stock at $19.00 per share. |
August 15 | Received a $0.85 per share cash dividend on the Gem Company stock. |
August 28 | Sold 3,000 shares of Gem Company stock at $34.75 per share. |
October 1 | Received a $1.50 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 $1.25 per share cash dividend on the PepsiCo shares. |
The year-end fair values per share are Gem Company, $30.25; PepsiCo, $42.25; and Xerox, $16.00.
Problem 15-4A (Algo) Part 3
3. Prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments.
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