On January 4, 2011, Larsen Company purchased 5,000 shares of Warner Company for $59,500 plus a broker's fee of $1,000. Warner Company has a total of 25,000 shares of common stock outstanding and it is presumed the Larsen Company will have a significant influence over Warner. During each of the next two years, Warner declared and paid cash dividends of $0.85 per share. Its net income was $72,000 and $67,000 for 2011 and 2012, respectively. The January 12, 2013, entry to record the sale of 3,000 shares of Warner Company stock for $39,000 cash should be:

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The Answer of On January 4, 2011, Larsen Company purchased 5,000 shares of Warner Company for $59,500 plus a broker's fee of $1,000. Warner Company has a total of 25,000 shares of common stock outstanding and it is presumed the Larsen Company will have a significant influence over Warner. During each of the next two years, Warner declared and paid cash dividends of $0.85 per share. Its net income was $72,000 and $67,000 for 2011 and 2012, respectively. The January 12, 2013, entry to record the sale of 3,000 shares of Warner Company stock for $39,000 cash should be:

On January 4, 2011, Larsen Company Purchased 5,000 Shares of Warner