E9-34. Assessing Financial Statement Effects Inv Use the financial statement effects template (with

amounts and accounts) to record the following transactions.

1. Ball purchased 5,000 common shares of Leftwich at $15 cash per share.

2. Leftwich reported annual net income of $40,000.

3. Ball received a cash dividend of $1.10 per common share from Leftwich.

4. Year-end market price of Leftwich common stock is $19 per share.

b. Assume that the stock acquired by Ball represents 30% of Leftwichs voting stock and that Ball accounts

for this investment using the equity method because it is

estments

On January 1, 2018, Ball Corporation purchased shares of Leftwich Company common stock.

a. Assume that the stock acquired by Ball represents 15% of Leftwichs voting stock and that Ball has

no influence over Leftwichs business decisions.

able to exert significant influence. Use the

financial statement effects template (with amounts and accounts) to record the following transactions.

1. Ball purchased 5,000 common shares of Leftwich at $15 cash per share.

2. Leftwich reported annual net income of $40,000.

3. Ball received a cash dividend of $1.10 per common share from Leftwich.

4. Year-end market price of Leftwich common stock is $19 per share.

Note: Please use the financial statement effects template to record every transaction.Use the financial statement effects template (with

amounts and accounts) to record the above transactions. Please mention the accounts too

Financial effects template

Balance Sheet Income Statement

Transaction Cash Assets + Non-Cash Assets = Liabilities + Contributed Capital + Earned Capital Revenue - Expenses = Net Income