Problem 15-4B Recording, adjusting, and reporting stock investments with insignificant influence P4 Slip Systems had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence. Feb. 6 Purchased 3,400 shares of Nokia stock at $41 per share. Apr. 7 Purchased 1,200 shares of Dell stock at $39 per share. June 2 Purchased 2,500 shares of Merck stock at $72 per share. 30 Received a $1.00 per share cash dividend on the Nokia shares. Sold 850 shares of Nokia stock at $46 per share. 11 24 Received a $0.10 per share cash dividend on the Dell shares. Nov. 9 Received a $1.50 per share cash dividend on the remaining Nokia shares. Dec. 18 Received a $0.15 per share cash dividend on the Dell shares. Aug. 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 the short-term stock investments. The year-end fair values per share are Nokia, $40; Dell, $41; and Merck, $59. Check (2) Cost = $331,350 3. Prepare an adjusting entry, if necessary, to record the year-end fair value adjustment for the portfolio of short-term stock investments. (3) Dr. Unrealized Loss-Income, $32,650

Problem 15-4B Recording, adjusting, and reporting stock investments with insignificant influence 4 P4 Slip Sytems had no shorterm imestments prior to this year, It had the following transactions this year involving shortterm Hock imvestments with insiznificant influence. Feb. 6 Purchased 3,400 shares of Nokia stock at $41 per shate. Ape. 7 Purchased 1,200 shares or Dell stock at $39 per share. June 2 Purchased 2,500 shares of Merck stock at $72 per share. 30 Received a $1.00 per share cash dividend on the Nokia shares. Aug. II Sold 850 shates of Nokia stock at $46 per share. 24 Received a $0.10 per share cash dividend on the Dell shares. Nov. 9 Received a $150 per share cash dividend on the remaining Nokia shares: Dec. 18 Received a 50.15 per share cash dividend on the Dell 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 the shortterm stock inestments. The yearend fair values per share are Nokia, \$40; Dell, \$41; and Merck, \$59