Perry Company had no short-term investments prior to year 2011. It had the following transactions involving short-term investments in available-for-sale securities during 2011.
| Apr. |
16 |
|
Purchased 8,000 shares of Gem Co. stock at $24.25 per share plus a $360 brokerage fee. |
| May |
1 |
|
Paid $200,000 to buy 90-day U.S. Treasury bills (debt securities): $200,000 principal amount, 6% interest, securities dated May 1.
|
| July |
7 |
|
Purchased 4,000 shares of PepsiCo stock at $49.25 per share plus a $350 brokerage fee. |
|
20 |
|
Purchased 2,000 shares of Xerox stock at $16.75 per share plus a $410 brokerage fee. |
| Aug. |
3 |
|
Received a check for principal and accrued interest on the U.S. Treasury bills that matured on July 29.
|
|
15 |
|
Received an $0.85 per share cash dividend on the Gem Co. stock. |
|
28 |
|
Sold 4,000 shares of Gem Co. stock at $30 per share less a $450 brokerage fee. |
| Oct. |
1 |
|
Received a $1.90 per share cash dividend on the PepsiCo shares. |
| Dec. |
15 |
|
Received a $1.05 per share cash dividend on the remaining Gem Co. shares. |
|
31 |
|
Received a $1.30 per share cash dividend on the PepsiCo shares. |
Prepare a table to compare the year-end cost and fair values of Perry's short-term investments in available-for-sale securities. The year-end fair values per share are: Gem Co., $26.50; PepsiCo, $46.50; and Xerox, $13.75.