Ellis Transport Company acquired 1.5 million shares of stock in L&K Corporation at $77 per share. They are classified by Ellis as “available for sale.” Ellis sold 500,000 shares at $80, received a 10% stock dividend, and then later in the year sold another 200,000 shares at $76.
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.
Prepare journal entries to record these transactions.(If no entry is required for a particular 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 5.5).)