Problem C$-4$A $($Algo$)$ Recording, adjusting, and reporting stock investments with insignificant influence LO P$4$

$[$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 shortterm stock investments with insignificant influence.

April $16$ Purchased $8,000$ shares of Gem Company stock at $$23\mathrm{.}25$ per share.

July $7$ Purchased $4,000$ shares of PepsiCo stock at $$53\mathrm{.}00$ per share.

July $20$ Purchased $2,000$ shares of Xerox stock at $$17\mathrm{.}00$ per share.

August $15$ Received a $$0\mathrm{.}80$ per share cash dividend on the Gem Company stock.

August $28$ Sold $4,000$ shares of Gem Company stock at $$30\mathrm{.}00$ per share.

october $1$ Received a $$1\mathrm{.}80$ per share cash dividend on the PepsiCo shares.

December $15$ Received a $$0\mathrm{.}95$ per share cash dividend on the remaining Gem Company shares.

December $31$ Received a $$1\mathrm{.}20$ per share cash dividend on the PepsiCo shares.

The year$-$end fair values per share are Gem Company, $$25\mathrm{.}50$; PepsiCo, $$50\mathrm{.}25$; and Xerox, $$14\mathrm{.}00.$

Problem C$-4$A $($Algo$)$ Part $3$

$3.$ Prepare an adjusting entry to record the year$-$end fair value adjustment for the portfolio of short$-$term stock investments.

Journal entry worksheet

$1$

Record the year$-$end adjusting entry for the securities portfolio.