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 6,000 shares of Gem Co. stock at $21.75 per share.
July		7		Purchased 3,000 shares of PepsiCo stock at $53.00 per share.
		20		Purchased 1,500 shares of Xerox stock at $17.00 per share.
Aug.		15		Received a(n) $0.85 per share cash dividend on the Gem Co. stock.
		28		Sold 3,000 shares of Gem Co. stock at $28.50 per share.
Oct.		1		Received a $1.60 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 $1.40 per share cash dividend on the PepsiCo shares.

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., $24.00; PepsiCo, $50.25; and Xerox, $14.00.

3. Prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments.

Record the year-end adjusting entry for the securities portfolio as of December 31.