Problem 15.4A Recording, adjusting, and reporting stock investments with insignificant influence 5 S P4 Rose Company had no shortterm investments prior to this year. It had the following transactions this year involving shortterm 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. Oet. 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 yearend cost and fair values of Rose's shortterm stock investments. The yearend fair values per share are Gem Co., \$26; PepsiCo, \$46; and Xerox, \$13. 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 yearend