Ellis Transport Company acquired 1.2 million shares of stock in L&K Corporation at $44 per share. They

Question:

Ellis Transport Company acquired 1.2 million shares of stock in L&K at $44 per share. They are classified by Ellis as “available for sale.” Ellis sold 200,000 shares at $46, received a 10% stock dividend, and then later in the year sold another 100,000 shares at $43.

Required:
Prepare journal entries to record these transactions.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...