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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.
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 2,800 shares of PepsiCo stock at $49 per share. 20 Purchased 1,800 shares of Xerox stock at $16 per share. Aug. 15 Received a $1.ee per share cash dividend on the Gem Co. stock. 28 Sold 2,000 shares of Gem Co. stock at $30 per share. 1 Received a $2.50 per share cash dividend on the PepsiCo shares. Dec. 15 Received a $1.ee per share cash dividend on the remaining Gem Co. shares. 31 Received a $1.50 per share cash dividend on the PepsiCo shares. A.) Record the 8 journal entries B.) Oct. 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, 546; and Xerox, $13. Comparison of Cost and Fair Values for Stock Investments Portfolio at Year-End Unrealized Cost Fair Value Amount Gem Co. Pepsi Co. Xerox Total 0 $ C.) 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.(1 Journal Entry)
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