Stone Company Had the Following Transactions Pertaining to Short-Term Investments

question 99

Essay

Stone Company had the following transactions pertaining to short-term investments in equity securities.
Jan. 1 Purchased 1,500 shares of Quayle Company stock for $9,150 cash plus brokerage fees of $300.
June 1 Received cash dividends of $.50 per share on Quayle Company stock.
Sept. 15 Sold 400 shares of Quayle Company stock for $2,500 less brokerage fees of $100.
Dec. 1 Received cash dividends of $.50 per share on Quayle Company stock.
Instructions
(a) Journalize the transactions.
(b) Indicate the income statement effects of the transactions.

Analyze the concept and implications of using personal funds for business financing.

Identify and assess the methods used by firms to decide on the optimal amount of research and development.

Describe the legal protections available for innovations and the advantages of being a leader in innovation.

Evaluate the arguments for and against the elimination of patents on certain types of products.

---

Definitions:

Positive Illusions

Favorable views of the self that are not necessarily rooted in reality.

Positive Illusions

Slightly unrealistic or exaggerated beliefs that people have about themselves or situations, which can be beneficial to mental health.

Psychological Well-Being

A multidimensional state that includes individuals' emotional, psychological, and social well-being, reflecting overall satisfaction with life, sense of purpose, and ability to manage stress.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role and power of situational influences.