Problem 15-4A 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.

Apr.		16		Purchased 8,000 shares of Gem Co. stock at $24.50 per share.
July		7		Purchased 4,000 shares of PepsiCo stock at $54.00 per share.
		20		Purchased 2,000 shares of Xerox stock at $17.00 per share.
Aug.		15		Received a(n) $0.90 per share cash dividend on the Gem Co. stock.
		28		Sold 4,000 shares of Gem Co. stock at $31.25 per share.
Oct.		1		Received a $1.80 per share cash dividend on the PepsiCo shares.
Dec.		15		Received a $1.05 per share cash dividend on the remaining Gem Co. shares.
		31		Received a $1.40 per share cash dividend on the PepsiCo shares.

Problem 15-4A Part 3

3. Prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments.

fair value for Gem Co. $107,000

fair value for Pepsi $205,000

fair value for Xerox $28,000