Eaton Company Had the Following Transactions Pertaining to Its Short-Term

Essay

Eaton Company had the following transactions pertaining to its short-term stock investments.
Jan. 1 Purchased 900 shares of Stafford Company stock for $11,880 cash.
June 1 Received cash dividends of $0.60 per share on the Stafford Company stock.
Sept. 15 Sold 450 shares of the Stafford Company stock for $5,200.
Dec. 1 Received cash dividends of $0.60 per share on the Stafford Company stock.
Instructions
(a) Journalize the transactions.
(b) Indicate the income statement effects of the transactions.