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Assessing Financial Statement Effects Investments On January 1 , Ball Corporation purchased shares of Leftwich Company common stock. ( a ) Assume that the stock

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Assessing Financial Statement Effects Investments
On January 1, Ball Corporation purchased shares of Leftwich Company common stock.
(a) Assume that the stock acquired by Ball represents 15% of Leftwich's voting stock and that Ball has no influence over Leftwich's business decisions. Use the financial statement effects template to record the following transactions:
(1) Ball purchased 10,000 common shares of Leftwich at $17 cash per share.
(2) Leftwich reported annual net income of $80,000.
(3) Ball received a cash dividend of $1.20 per common share from Leftwich.
(4) Year-end market price of Leftwich common stock is $19 per share.
Use negative signs with your answers, when appropriate.
\table[[Transaction,Balance Sheet],[,,Noncash,,,,Contributed,,Earned],[Cash Asset,+-,Assets,=,Liabilities,4,Capital,+,Capital],[(1),a,,,,0,,,0,2],[(2),0,,,?,0,,,0,c],[(3),0,,,,0,,,0,],[(4),0,,,0,0,,,0,]]
\table[[Income Statement],[Revenue,Expenses,\table[[Net],[Income]]],[0,0,0],[0,0,0],[0,0,0],[0,0,0]]
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