Business, 15.07.2020 01:01 goldenrizo

Rose Company had no short-term investments prior to year 2013.It had the following transactions involving short-term investmentsin available-for-sale securities during 2013. Apr. 16 Purchased 4,000 shares of Gem Co. stock at $25.75 pershare plus a $400 brokerage fee.
May 1 Paid $160,000 to buy 90-day U. S. Treasury bills (debtsecurities): $160,000 principal amount, 5% interest, securitiesdated May 1.
July 7 Purchased 2,000 shares of PepsiCo stock at $49.00 pershare plus a $370 brokerage fee.
July 20 Purchased 1,000 shares of Xerox stock at $15.00 pershare plus a $450 brokerage fee.
Aug. 3 Received a check for principal and accrued interest onthe U. S. Treasury bills that matured on July 29.
Aug.15 Received an $0.95 per share cash dividend on the Gem Co. stock.
Aug. 28 Sold 2,000 shares of Gem Co. stock at $32.50 per shareless a $490 brokerage fee.
Oct. 1 Received a $2.00 per share cash dividend on the PepsiCoshares.
Dec. 15 Received a $1.10 per share cash dividend on theremaining Gem Co. shares.
Dec. 31 Received a $1.20 per share cash dividend on the PepsiCoshares.
1. Prepare journal entries to record the preceding transactionsand events.
2. Prepare a table to compare the year-end cost and fair valuesof Perryâs short-term investments in available-for-sale securities. The year-end fair values per share are: Gem Co., $28.00; PepsiCo,$46.25; and Xerox, $12.00.
3. Prepare an adjusting entry, if necessary, to record theyear-end fair value adjustment for the portfolio of short-terminvestments in available-for-sale securities.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 19:30

Maker-bot corporation has 10,000 shares of 10%, $90 par value, cumulative preferred stock outstanding since its inception. no dividends were declared in the first two years. if the company pays $400,000 of dividends in the third year, how much will common stockholders receive?

Answers: 2

Answer

Business, 22.06.2019 08:30

Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturer’s national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturer’s bank will be able to extend as the result of truck’s deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fed’s action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.

Answers: 1

Answer

Business, 22.06.2019 09:40

Salt corporation's contribution margin ratio is 78% and its fixed monthly expenses are $30,000. assume that the company's sales for may are expected to be $89,000. required: estimate the company's net operating income for may, assuming that the fixed monthly expenses do not change.

Answers: 1

Answer

Business, 22.06.2019 18:00

*will mark brainliest! * when a company spends resources (labor, money) to give customers "free" items, those costs are called a. investment costs b. economic costs c. scarcity costs d. opportunity costs answer asap!

Answers: 1

Answer

You know the right answer?

Rose Company had no short-term investments prior to year 2013.It had the following transactions invo...

Questions