[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.
Apr. | 16 | Purchased 3,500 shares of Gem Co. stock at $24 per share. | ||
July | 7 | Purchased 2,000 shares of PepsiCo stock at $49 per share. | ||
20 | Purchased 1,000 shares of Xerox stock at $16 per share. | |||
Aug. | 15 | Received a $1.00 per share cash dividend on the Gem Co. stock. | ||
28 | Sold 2,000 shares of Gem Co. stock at $30 per share. | |||
Oct. | 1 | Received a $2.50 per share cash dividend on the PepsiCo shares. | ||
Dec. | 15 | Received a $1.00 per share cash dividend on the remaining Gem Co. shares. | ||
31 | Received a $1.50 per share cash dividend on the PepsiCo shares. |
3. Prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments.
Note: Enter debits before credits.
|
Date | Accounts | debit | credit |
Apr-16 | short term investments-AFS (gem) | 84000 | |
cash | 84000 | ||
3500*24 | |||
Jul-07 | short term investments-AFS (pepsi) | 98000 | |
cash | 98000 | ||
2000*49 | |||
Jul-20 | short term investments-AFS (xerox) | 15000 | |
cash | 15000 | ||
1000*15 | |||
Aug-15 | Cash | 3500 | |
Dividend revenue | 3500 | ||
3500*1 | |||
Aug-28 | cash | 60000 | |
2000*30 | |||
short term investments-AFS (Gem) | 48000 | ||
2000*24 | |||
Gain on sale of short term investments | 12000 | ||
Oct-01 | Cash | 5000 | |
Dividend revenue | 5000 | ||
2.5*2000 | |||
Dec-15 | Cash | 1500 | |
Dividend revenue | 1500 | ||
1*(3500-2000) | |||
Dec-31 | Cash | 3000 | |
Dividend revenue | 3000 | ||
1.5*2000 | |||
Ques 3 | |||
Dec-31 | Unrealised loss equity | 5000 | |
Fair value adjustment-AFS | 5000 |
Working
Cost | fair value | unrealised amount | gain or loss | |
Gem co | 36000 | 39000 | ||
Pepsi co | 98000 | 92000 | ||
Xerox | 15000 | 13000 | ||
Total | 149000 | 144000 | -5000 | Unrealised loss |
Working | ||||
(3500-2000)*24 | 36000 | |||
(3500-2000)*26 | 39000 | |||
2000*46 | 92000 | |||
1000*13 | 13000 | |||
[The following information applies to the questions displayed below.] Rose Company had no short-term investments prior...
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. Apr. 16 Purchased 3,500 shares of Gem Co. stock at $24 per share. July 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. 20 Purchased 1,000 shares of Xerox stock at $16 per share. Aug. 15 Received a $1.00 per share cash dividend on the Gem Co. stock. 28 Sold 2,000 shares of Gem...
Help me answer #2
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. Apr. 16 Purchased 3,500 shares of Gem Co. stock at $24 per share. July 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. 20 Purchased 1,000 shares of Xerox stock at $16 per share. Aug. 15 Received a $1.00 per share cash dividend on the Gem Co. stock. 28 Sold...
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Required information The following information applies to the questions displayed below Rose Company had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017 Apr. 16 Purchased 6,000 shares of Gem Co. stock at $23.00 per share plus a $320 brokerage fee May 1 Paid $150,000 to buy 3-month U. S. Treasury bills (debt securities) : $150,000 principal amount, 4% interest, securities mature on July 31. July 7 Purchased 3,000...
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4 Required Informatlion Problem 15-2A Recording,.adjusting, and reporting short-term available-for-sale securities LO P3 The following information applies to the questions displayed below Part 1 of 3 Rose Company had no short term investments prior to year 2017 It had the following transections involving short-term points Apr. 16 Purchased 4,eee shares of Gen Co. stock at $24.25 per share plus a $188 brokerage fee Nay apaid s1ee,en to buy 3-sonth u.s. Treasury bills (debt securities): s1e9,eee principle anount, et interest, Duly...
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Carlsville 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 1,600 shares of Hunt Corp. at $30 per share. Sept. 5 Received a $2 cash dividend for each share of Hunt Corp. Sept. 27 Purchased...
Carlsville 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 1,300 shares of Hunt Corp. at $22 per share. Sept. 5 Received a $2 cash dividend for each share of Hunt Corp. Sept. 27 Purchased...
Carlsville 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 1,700 shares of Hunt Corp. at $25 per share. Sept. 5 Received a $2 cash dividend for each share of Hunt Corp. Sept. 27 Purchased...