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 10,000 shares of Gem Company stock at $25.75 per share. July 7 Purchased 5,000 shares of PepsiCo stock at $52.00 per share. July 20 Purchased 2,500 shares of Xerox stock at $19.00 per share. August 15 Received a $0.95 per share cash dividend on the Gem Company stock. August 28 Sold 5,000 shares of Gem 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, $49.25; and Xerox, $16.00. 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 Increase Increase
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 10,000 shares of Gem Company stock at $25.75 per share. July 7 Purchased 5,000 shares of PepsiCo stock at $52.00 per share. July 20 Purchased 2,500 shares of Xerox stock at $19.00 per share. August 15 Received a $0.95 per share cash dividend on the Gem Company stock. August 28 Sold 5,000 shares of Gem 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, $49.25; and Xerox, $16.00. 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 Increase Increase
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.6AP
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![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 10,000 shares of Gem Company stock at $25.75 per share.
July 7 Purchased 5,000 shares of PepsiCo stock at $52.00 per share.
July 20 Purchased 2,500 shares of Xerox stock at $19.00 per share.
August 15 Received a $0.95 per share cash dividend on the Gem Company stock.
August 28 Sold 5,000 shares of Gem 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, $49.25; and Xerox, $16.00.
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
Increase
Increase](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50458ae8-1f36-4b84-a2d3-ea5853637ce4%2F2fe11e1f-fb79-446d-9925-c4652e94c007%2F5rcvyvq_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 10,000 shares of Gem Company stock at $25.75 per share.
July 7 Purchased 5,000 shares of PepsiCo stock at $52.00 per share.
July 20 Purchased 2,500 shares of Xerox stock at $19.00 per share.
August 15 Received a $0.95 per share cash dividend on the Gem Company stock.
August 28 Sold 5,000 shares of Gem 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, $49.25; and Xerox, $16.00.
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
Increase
Increase
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