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 3,500 shares of Gem Company stock at $24 per share. July 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. July 20 Purchased 1,000 shares of Xerox stock at $16 per share. August 15 Received a $1.00 per share cash dividend on the Gem Company stock. August 28 Sold 2,000 shares of Gem Company stock at $30 per share. October 1 Received a $2.50 per share cash dividend on the PepsiCo shares. December 15 Received a $1.00 per share cash dividend on the remaining Gem Company shares. December 31 Received a $1.50 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13. 4. Prepare the current asset section of the balance sheet for the fair value adjustment for Rose’s short-term investments.
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 3,500 shares of Gem Company stock at $24 per share. July 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. July 20 Purchased 1,000 shares of Xerox stock at $16 per share. August 15 Received a $1.00 per share cash dividend on the Gem Company stock. August 28 Sold 2,000 shares of Gem Company stock at $30 per share. October 1 Received a $2.50 per share cash dividend on the PepsiCo shares. December 15 Received a $1.00 per share cash dividend on the remaining Gem Company shares. December 31 Received a $1.50 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13. 4. Prepare the current asset section of the balance sheet for the fair value adjustment for Rose’s short-term investments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
| April 16 | Purchased 3,500 shares of Gem Company stock at $24 per share. |
|---|---|
| July 7 | Purchased 2,000 shares of PepsiCo stock at $49 per share. |
| July 20 | Purchased 1,000 shares of Xerox stock at $16 per share. |
| August 15 | Received a $1.00 per share cash dividend on the Gem Company stock. |
| August 28 | Sold 2,000 shares of Gem Company stock at $30 per share. |
| October 1 | Received a $2.50 per share cash dividend on the PepsiCo shares. |
| December 15 | Received a $1.00 per share cash dividend on the remaining Gem Company shares. |
| December 31 | Received a $1.50 per share cash dividend on the PepsiCo shares. |
The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13.
4. Prepare the current asset section of the balance sheet for the fair value adjustment for Rose’s short-term investments.
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