FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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.

 

 

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(a) Income statement for this year
(b) The equity section of its balance sheet at this year-end
Amount
Increase or Decrease
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Transcribed Image Text:(a) Income statement for this year (b) The equity section of its balance sheet at this year-end Amount Increase or Decrease
!
Required Information
[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.
April 16 Purchased 10,000 shares of Gem Company stock at $27.75 per share.
July 7 Purchased 5,000 shares of PepsiCo stock at $53.00 per share.
Purchased 2,500 shares of Xerox stock at $16.00 per share.
July 20
August 15 Received a $0.80 per share cash dividend on the Gem Company stock.
August 28 Sold 5,000 shares of Gem Company stock at $34.50 per share.
October 1 Received a $1.60 per share cash dividend on the PepsiCo shares.
December 15 Received a $0.95 per share cash dividend on the remaining Gem Company shares.
December 31 Received a $1.40 per share cash dividend on the PepsiCo shares.
The year-end fair values per share are Gem Company, $30.00; PepsiCo, $50.25; and Xerox, $13.00.
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Transcribed Image Text:! Required Information [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. April 16 Purchased 10,000 shares of Gem Company stock at $27.75 per share. July 7 Purchased 5,000 shares of PepsiCo stock at $53.00 per share. Purchased 2,500 shares of Xerox stock at $16.00 per share. July 20 August 15 Received a $0.80 per share cash dividend on the Gem Company stock. August 28 Sold 5,000 shares of Gem Company stock at $34.50 per share. October 1 Received a $1.60 per share cash dividend on the PepsiCo shares. December 15 Received a $0.95 per share cash dividend on the remaining Gem Company shares. December 31 Received a $1.40 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $30.00; PepsiCo, $50.25; and Xerox, $13.00.
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