Ellis Transport Company acquired 1.1 million shares of stock in L&K Corporation at $55 per share. They are classified by Ellis as available for sale. Ellis sold 100,000 shares at $59, received a 10% stock dividend, and then later in the year sold another 100,000 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:

1) Record acquisition of shares in L & K Corporation.

2) Record sale of 100,000 shares.

3) Record sale of 100,000 shares.