Rose Company had no short-term investments prior to this year. It had the following transactions this year involving term stock investments with insignificant influence. April 16 Purchased 8,000 shares of Gem Company stock at $23.25 per share. July 7 Purchased 4,000 shares of PepsiCo stock at $53.00 per share. July 20 Purchased 2,000 shares of Xerox stock at $17.00 per share. August 15 Received a $0.80 per share cash dividend on the Gem Company stock. August 28 Sold 4,000 shares of Gem Company stock at $30.00 per share. October 1 Received a $1.80 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 $1.20 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $25.50; PepsiCo, $50.25; and Xerox, $14.00.
Rose Company had no short-term investments prior to this year. It had the following transactions this year involving term stock investments with insignificant influence. April 16 Purchased 8,000 shares of Gem Company stock at $23.25 per share. July 7 Purchased 4,000 shares of PepsiCo stock at $53.00 per share. July 20 Purchased 2,000 shares of Xerox stock at $17.00 per share. August 15 Received a $0.80 per share cash dividend on the Gem Company stock. August 28 Sold 4,000 shares of Gem Company stock at $30.00 per share. October 1 Received a $1.80 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 $1.20 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $25.50; PepsiCo, $50.25; and Xerox, $14.00.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.6AP
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