Question

Help me answer #2&#3

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.

Answer 1

2.)				Amount $
		Cost	Fair Value	Unrealized gain (loss)
	Gem Co.	36,000	39,000	3,000
	Pepsi Co.	98,000	92,000	-6,000
	Xerox	16,000	13,000	-3,000
	Total	1,50,000	1,44,000	-6,000

3.)	Date	Description	Debit $	Credit $
	Dec.31	Unrealized holidng loss	6,000
		Fair value adjustment		6,000