Question
[The following information applies to the questions displayed below.] Rose Company had no short-term investments prior to this year. It had the following transactions this
[The following information applies to the questions displayed below.] 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 2,000 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. | |||
| Oct. | 1 | 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. |
3. Prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments.
Note: Enter debits before credits.
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
9781119563099
