Required: 1. Prepare journal entries to record the preceding transactions and events. (Do not round your intermediate calculation Answer is complete and correct. No 1 Date April 16 General Journal Debit Credit Stock investments 84,000 Cash 84,000 2 July 07 Stock investments Cash 3 July 20 Stock investments Cash 4 August 15 Cash Dividend revenue 5 August 28 Cash Stock investments Gain on sale of stock investments 6 October 01 Cash Dividend revenue 7 December 15 Cash Dividend revenue 8 December 31 Cash Dividend revenue >> >> 98,000 98,000 16,000 16,000 >> 3,500 3,500 60,000 48,000 12,000 5,000 5,000 1,500 1,500 3,000 3,000 2. Prepare a table to compare the year-end cost and fair values of Rose's short-term stock investments. Comparison of Cost and Fair Values for Stock Investments Portfolio at Year-End Gem Company PepsiCo Xerox Total Cost Fair Value Unrealized Amount Gain or Loss? $ 36,000 $ 39,000 98,000 92,000 16,000 13,000 $ 150,000 $ 144,000 $ (6,000) Unrealized loss 3. Prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments. View transaction list View journal entry worksheet No Date General Journal 1 December 31 Unrealized loss - Income Fair value adjustment - Stock Debit Credit 6,000 6,000 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. April 16 Purchased 3,500 shares of Gem Company stock at $24 per share. July 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. July 20 Purchased 1,000 shares of Xerox stock at $16 per share. August 15 Received a $1.00 per share cash dividend on the Gem Company stock. August 28 Sold 2,000 shares of Gem Company stock at $30 per share. October 1 Received a $2.50 per share cash dividend on the PepsiCo shares. December 15 Received a $1.00 per share cash dividend on the remaining Gem Company shares. December 31 Received a $1.50 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13. 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. (a) Income statement for this year (b) The equity section of its balance sheet at this year-end