On August 15, 2014, Cubs Corp. purchases 5,000 shares of common stock in Sox Inc. at a

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On August 15, 2014, Cubs Corp. purchases 5,000 shares of common stock in Sox Inc. at a market price of $15 per share. In addition, Cubs pays brokerage fees of $1,000. On October 20, 2014, Cubs sells the Sox stock for $10 per share.


Required

Prepare all necessary entries on Cubs’s books in connection with the investment beginning with the purchase of the common stock on August 15, 2014, and the sale on October 20, 2014.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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