Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter C, Problem 1PSA
Summary Introduction
Concept Introduction:
To Give:
Necessary Journal entry.
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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.
Purchased 1,000 shares of Xerox stock at $16 per share.
July 20
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.
$2.50 per
share cash
dividend on the PepsiCo shares.
October 1 Received a
December 15 Received a
$1.00 per
share cash
dividend on the remaining Gem Company shares.
dividend on the PepsiCo shares.
December 31 Received a $1.50 per share cash
The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13.
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.
Purchased 1,000 shares of Xerox stock at $16 per share.
July 20
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.
share cash dividend on the PepsiCo shares.
October 1 Received a $2.50 per
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.
2. Prepare a table to compare the year-end cost and fair values of Rose's short-term stock investments.
Comparison of Cost and Fair Values for Stock…
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.
Purchased 2,000 shares of PepsiCo stock at $49 per share.
July 7
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
December 15 Received a $1.00 per
share cash dividend on the PepsiCo shares.
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.
5. 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…
Chapter C Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. C - Under what two conditions should investments be...Ch. C - Prob. 2DQCh. C - Prob. 3DQCh. C - Identify the three classes of debt investments and...Ch. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Prob. 13DQCh. C - Prob. 14DQCh. C - Which of the following statements a through g are...Ch. C - Prob. 2QSCh. C - Prob. 3QSCh. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Journ Co. purchased short-term investments in...Ch. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - Prob. 12QSCh. C - Complete the following descriptions by filling in...Ch. C - Complete the following descriptions by filling in...Ch. C - Prob. 15QSCh. C - Prob. 17QSCh. C - Complete the following descriptions by filling in...Ch. C - Prob. 2ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - Use the following information of Prescrip Co. to...Ch. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 12ECh. C - Complete the following descriptions by filling in...Ch. C - Prob. 14ECh. C - Prob. 1PSACh. C - Prob. 3PSACh. C - Prob. 4PSACh. C - Prob. 5PSACh. C - Prob. 6PSACh. C - Prob. 1PSBCh. C - Prob. 3PSBCh. C - Prob. 4PSBCh. C - Prob. 5PSBCh. C - Prob. 6PSBCh. C - Prob. CSPCh. C - Prob. 1GLPCh. C - Prob. 2GLPCh. C - Prob. 1FSACh. C - Prob. 2FSACh. C - Prob. 3FSACh. C - Prob. 2BTN
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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.arrow_forwardEco Corporation 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 4,000 shares of Ontario Company stock at $26 per share. July 7 Purchased 2,500 shares of Van Company stock at $51 per share. July 20 Purchased 1,200 shares of Twinings Company stock at $18 per share. August 15 Received an $1.00 per share cash dividend on the Ontario Company stock. August 28 Sold 2,400 shares of Ontario Company stock at $29 per share. October 1 Received a $3.10 per share cash dividend on the Van Company shares. December 15 Received a $1.20 per share cash dividend on the remaining Ontario Company shares. December 31 Received a $2.50 per share cash dividend on the Van Company shares.arrow_forwardRose Company had no-short 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 PepsiCo shares. 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 pepsi shares. The year-end fair values per share are Gem Company, $26; PepsiCo, $46; and Xerox, $13. Prepare the current asset section of the balance sheet for the fair value adjustment for Rose's short-term investments. Note: Amounts to be deducted should be…arrow_forward
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- Rose Company had no short-term investments prior to this yearIt had the following transactions this year involving short- term stock Investments with insignificant influence. April 16 Purchased 6,000 shares of Gem Company stock at $25.75 per share. July 7 Purchased 3,000 shares of PepsiCo stock at $46.00 per share. July 20 Purchased 1,500 shares of Xerox stock at $19.00 per share. August 15 Received a 8.95 per share cash dividend on the Gem Company stock. August 28 Sold 3,000 shares of Company stock at $32.50 per share. October 1 Received a $2.00 per share cash dividend on the PepsiCo shares. December 15 Received a $1.10 per share cash dividend on the remaining Gem Company shares. December 31 Received a $1.30 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company$28.00 PepsiCo, 43.25and Xerox, $16.00 Required: Prepare journal entries to record the preceding transactions and events.arrow_forwardCarlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Purchased 1, 500 shares of Hunt Corporation at $23 per share. September 5 Received a $2 cash dividend for each share of Hunt Corporation. September 27 Purchased 3, 400 shares of HCA at $21 per share. October 3 Sold 1,500 shares of Hunt at $18 per share. October 30 Purchased 1,300 shares of Black & Decker at $53 per share. December 17 Received a $3 cash dividend for each share of Black & Decker. December 31 Fair value of the short-term stock investments is $143,000.arrow_forwardNasser Inc. had the following transactions pertaining to stock investments. Jan. 1 Purchased 3,500 shares of Eshaq Corporation common stock (5%) for $212,625 cash, plus brokerage fees of $875. July 1 Received cash dividends of $4 per share on Eshaq common stock. Nov. 1 Sold 500 shares of Eshaq common stock for $32,100, less brokerage fees of $100. Dec. 1 Received cash dividends of $4 per share on Eshaq common stock. Instructions Journalize the transactions.arrow_forward
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