Problem 15-4A Recording, adjusting, and reporting stock investments with insignificant influence P41 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. July Aug. 16 Purchased 3,500 shares of Gem Co. stock at $24 per share. 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. 20 Purchased 1,000 shares of Xerox stock at $16 per share. 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. 1 Received a $2.50 per share cash dividend on the PepsiCo shares. 15 Received a $1.00 per share cash dividend on the remaining Gem Co. shares. 31 Received a $1.50 per share cash dividend on the PepsiCo shares. Oct. Dec. 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