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. I Received a $2.50 per share cash dividend on the PepsiCo shares. Dec. 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. 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. Analysis Component 4. Prepare the current asset section of the balance sheet for the fair value adjustment for Rose's short-term investments. 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. Selk Steel Co., which began operations in Year 1 , had the following transactions and events in its long-term investments. Year 1 Jan. 5 Selk purchased 60,000 shares ( 20% of total) of Kildaire's common stock for $1,560,000. Oct. 23 Kildaire declared and paid a cash dividend of $3.20 per share. Dec. 31 Kildaire's net income for the year is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share. Year 2 Oct. 15 Kildaire declared and paid a cash dividend of $2.60 per share. Dec. 31 Kildaire's net income for the year is $1,476,000, and the fair value of its stock at December 31 is $32.00 per share. Year 3 Jan. 2 Selk sold 3% (equal to 1,800 shares) of its investment in Kildaire for $54,200 cash. Required Prepare journal entries to record these transactions and events for Selk. Assume that Selk has a significant influence over Kildaire with its 20% share of stock. Problem 15-6A Accounting for long-term investments in stock without significant influence P4 Refer to the transactions in Problem 15-5A. Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances indicate that it does not have a significant influence over the investee. Required Prepare journal entries to record the preceding transactions and events for Selk