Cupcake Company Had the Following Transactions Pertaining to Its Temporary

question 210

Essay

Cupcake Company had the following transactions pertaining to its temporary stock investments.
Jan. 1 Purchased 600 shares of La Crema Company stock for $7,050 cash .
June 1 Received cash dividends of $0.40 per share on the La Crema Company stock.
Sept. 15 Sold 300 shares of the La Crema Company stock for $3,400 cash.
Instructions
Journalize the transactions.

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Definitions:

Quarterly Dividend

A dividend payment made to shareholders four times a year, each quarter.

Annually Compounded

Interest on an investment or loan calculated once a year and added to the principal sum for calculating future interest.

Quarterly Payment

Payments made every three months in a year, often used for loans, subscriptions, or service contracts.

Preferred Share

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, typically with fixed dividends.