Required information 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 8,000 shares of Gem Company stock at $21.25 per share. July 7 Purchased 4,000 shares of PepsiCo stock at $47.00 per share. July 20 Purchased 2,000 shares of Xerox stock at $19.00 per share. Received a $0.75 per share cash dividend on the Gem Company August 15 stock. August 28 Sold 4,000 shares of Gem Company stock at $28.00 per share. Received a $2.00 per share cash dividend on the PepsiCo shares. October 1 December 15 December 31 Received a $0.90 per share cash dividend on the remaining Gem Company shares. Received a $1.30 per share cash dividend on the PepsiCo shares. The year-end fair values per share are Gem Company, $23.50; PepsiCo, $44.25; and Xerox, $16.00. Problem 15-4A (Algo) Part 2 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 Investments Portfolio at Year-End Gem Company PepsiCo Xerox Total Cost Fair Value $ 0 $ 0 Unrealized Amount 3. Prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments. View transaction list Journal entry worksheet 1 Record the year-end adjusting entry for the securities portfolio. Note: Enter debits before credits. Date December 31 General Journal Debit Credit View general journal Record entry Clear entry 4. Prepare the current asset section of the balance sheet for the fair value adjustment for Rose's short-term investments. (Amounts to be deducted should be entered with a minus sign.) Current Assets Stock investments (as cost) Fair value adjustment-Stock Stock investments (at fair value) 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/Decrease