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 21:20

20. sinclair company's single product has a selling price of $25 per unit. last year the company reported a profit of $20,000 and variable expenses totaling $180,000. the product has a 40% contribution margin ratio. because of competition, sinclair company will be forced in the current year to reduce its selling price by $2 per unit. how many units must be sold in the current year to earn the same profit as was earned last year? a. 15,000 units b. 12,000 units c. 16,500 units d. 12,960 units

Answers: 1

Answer

Business, 22.06.2019 05:50

Acompany that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. prior to buying the new equipment, the company used 6 workers, who produced an average of 79 carts per hour. workers receive $16 per hour, and machine coast was $49 per hour. with the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by four carts per hour. a) compute the multifactor productivity (mfp) (labor plus equipment) under the prior to buying the new equipment. the mfp (carts/$) = (round to 4 decimal places). b) compute the productivity changes between the prior to and after buying the new equipment. the productivity growth = % (round to 2 decimal places)

Answers: 3

Answer

Business, 22.06.2019 11:10

Suppose that the firm cherryblossom has an orchard they are willing to sell today. the net annual returns to the orchard are expected to be $50,000 per year for the next 20 years. at the end of 20 years, it is expected the land will sell for $30,000. calculate the market value of the orchard if the market rate of return on comparable investments is 16%.

Answers: 1

Answer

Business, 22.06.2019 20:30

The smelting department of kiner company has the following production and cost data for november. production: beginning work in process 3,700 units that are 100% complete as to materials and 23% complete as to conversion costs; units transferred out 10,500 units; and ending work in process 8,100 units that are 100% complete as to materials and 41% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs for the month of november.

Answers: 3

Answer

You know the right answer?

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

Questions