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5. Identify the dollar increase or decrease from Rose's short-term stock investments on (a) its income statement for this year and (b) equity section of its balance sheet at this year-end. (a) Income statement for this year (b) The equity section of its balance sheet at this year-end Amount Increase or Decrease

5. Identify the dollar increase or decrease from Rose's short-term stock investments on (a) its income statement for this year and (b) equity section of its balance sheet at this year-end. (a) Income statement for this year (b) The equity section of its balance sheet at this year-end Amount Increase or Decrease

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 8E
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Required information Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence LO P4 [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 6,000 shares of Gem Company stock at $29.25 per share. July 7 Purchased 3,000 shares of PepsiCo stock at $51.00 per share. July 20 Purchased 1,500 shares of Xerox stock at $18.00 per share. August 15 Received a $0.85 per share cash dividend on the Gem Company stock. August 28 Sold 3,000 shares of Gem Company stock at $36.00 per share. October 1 Received a $1.90 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 $1.25 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $31.50; PepsiCo, $48.25; and Xerox, $15.00. Problem 15-4A (Algo) Part 5 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 section of its balance sheet at this year-end. (a) Income statement for this year (b) The equity section of its balance sheet at this year-end Amount Increase or Decrease
Transcribed Image Text:Required information Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence LO P4 [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 6,000 shares of Gem Company stock at $29.25 per share. July 7 Purchased 3,000 shares of PepsiCo stock at $51.00 per share. July 20 Purchased 1,500 shares of Xerox stock at $18.00 per share. August 15 Received a $0.85 per share cash dividend on the Gem Company stock. August 28 Sold 3,000 shares of Gem Company stock at $36.00 per share. October 1 Received a $1.90 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 $1.25 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $31.50; PepsiCo, $48.25; and Xerox, $15.00. Problem 15-4A (Algo) Part 5 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 section of its balance sheet at this year-end. (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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