Buttle Co. invests in the stock of Drummond, Inc. Record the following transactions in the financial statements effects template below.
1) Purchased 7,000 shares of Drummond, Inc. common stock for $18 per; these shares represent 30% ownership of Drummond, Inc., which conveys to Buttle Co. significant influence over the operations of Drummond.
2) Received a cash dividend of $4.62 per share from Drummond, Inc.
3) Drummond, Inc. reports net income of $226,800.
4) Sold all 7,000 shares of Drummond, Inc. for $170,400.

Question

Buttle Co. invests in the stock of Drummond, Inc. Record the following transactions in the financial statements effects template below. 
1) Purchased 7,000 shares of Drummond, Inc. common stock for $18 per; these shares represent 30% ownership of Drummond, Inc., which conveys to Buttle Co. significant influence over the operations of Drummond.
2) Received a cash dividend of $4.62 per share from Drummond, Inc.
3) Drummond, Inc. reports net income of $226,800.
4) Sold all 7,000 shares of Drummond, Inc. for $170,400.

Quizplus · Accepted Answer

The Answer of Buttle Co. invests in the stock of Drummond, Inc. Record the following transactions in the financial statements effects template below. 
1) Purchased 7,000 shares of Drummond, Inc. common stock for $18 per; these shares represent 30% ownership of Drummond, Inc., which conveys to Buttle Co. significant influence over the operations of Drummond.
2) Received a cash dividend of $4.62 per share from Drummond, Inc.
3) Drummond, Inc. reports net income of $226,800.
4) Sold all 7,000 shares of Drummond, Inc. for $170,400.

Buttle Co Invests in the Stock of Drummond, Inc