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Stone Company had the following transactions pertaining to short-term investments in equity securities.
Jan. 1 Purchased 1,000 ordinary shares of Quayle Company for $9,750 cash.
June 1 Received cash dividends of $.50 per share on Quayle Company shares.
Sept. 15 Sold 400 ordinary shares of Quayle Company for $2,400.
Dec. 1 Received cash dividends of $.50 per share on Quayle Company shares.
Instructions
(a) Journalize the transactions.
(b) Indicate the income statement effects of the transactions.
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