Question

On March 16, 2017, Kormen Company purchased 20,000 shares of stock of Zentry Company for $14...

On March 16, 2017, Kormen Company purchased 20,000 shares of stock of Zentry Company for $14 per share. On November 11, 2017, Zentry paid a dividend of $1.50 per share. On December 31, 2017, the market price of the stock had increased to $17.50 per share. On February 16, 2018, Kormen sold all of the shares for $16.60 per share.

Required: Record these three transaction on a financial statement effects template.

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Answer #1
Transaction Assets = Liabilities + Equity CFS
Cash Investment Common stock Revenue Expenses
Purchase        (2,80,000)     2,80,000 (2,80,000) Investing
Dividend             30,000      30,000       30,000 Investing
Dec.31        70,000      70,000                -  
Feb.16          3,32,000    (3,50,000)      18,000    3,32,000 Investing
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