Ellis Transport Company acquired $1\mathrm{.}3$ million shares of stock in L&K Corporation at $$55$ per share. They are reported by Ellis at "fair

value through net income." Ellis sold $300,000$ shares at $$56,$ received a $10\%$ stock dividend, and then later in the year sold another

$300,000$ shares at $$54.$

Hint: There is no entry for the stock dividend, but a new investment per share must be calculated for use later when the shares are

sold.

Required:

Prepare journal entries to record these transactions.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers

in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Journal entry worksheet

Record sale of $300,000$ shares.

Note: Enter debits before credits.Ellis Transport Company acquired $1\mathrm{.}3$ million shares of stock in L&K Corporation at $$55$ per share. They are reported by Ellis at "fair value through net income.$\text{'}\text{'}$ Ellis sold $300,000$ shares at $$56,$ received a $10\%$ stock dividend, and then later in the year sold another $300,000$ shares at $$54.$

Hint: There is no entry for the stock dividend, but a new investment per share must be calculated for use later when the shares are sold.

Required:

Prepare journal entries to record these transactions.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$