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.

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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 20EA: Longmont Corporation earned net income of $90,000 this year. The company began the year with 600...

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Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?
Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
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. Required 1. Prepare journal entries to record the preceding transactions and events. 2. Prepare a table to compare the year-end cost and fair values of Rose’s short-term stock investments. The year-end fair values per share are Gem Co., $26; PepsiCo, $46; and Xerox, $13. 3. Prepare an…
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. 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. 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…
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.
Rose 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…
Eco 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.
Slip Systems had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence. Feb. 6 Purchased 3,400 shares of Nokia stock at $41 per share. Apr. 7 Purchased 1,200 shares of Dell stock at $39 per share. June 2 Purchased 2,500 shares of Merck stock at $72 per share. 30 Received a $1.00 per share cash dividend on the Nokia shares. Aug. 11 Sold 850 shares of Nokia stock at $46 per share. 24 Received a $0.10 per share cash dividend on the Dell shares. Nov. 9 Received a $1.50 per share cash dividend on the remaining Nokia shares. Dec. 18 Received a $0.15 per share cash dividend on the Dell shares. Required 1. Prepare journal entries to record the preceding transactions and events. 2. Prepare a table to compare the year-end cost and fair values of the short-term stock investments. The year-end fair values per share are Nokia, $40; Dell, $41; and Merck, $59. 3. Prepare an adjusting entry, if…
A corporation had the following transactions involving stock investments with insignificant influence during the year. Prior to these transactions, this corporation had never had any investments. February 16 Purchased 995 shares of HM Corporation stock at $28 per share. February 26 Purchased 695 shares of Tugg Company stock at $20 per share.. March 2 Received a $0.60 per share dividend from the HM Corporation. March 28 Sold 330 shares of HM Corporation stock for $32 per share. April 20 Sold 280 shares of Tugg Company stock at $18 per share. December 31 HM stock has a fair value of $31 per share, and Tugg stock has a fair value of $17 per share. Prepare the required journal entries to record these transactions. Also prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments. Note: Round to nearest whole dollar. View transaction list View journal entry worksheet No 1 Date February 16 General Journal Debit 22,800 Credit ANKE
Nasser 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.