Question: This problem continues the Davis Consulting, Inc. situation from Problem P9-42. Davis Consulting invests its temporary excess cash in a brokerage account. On November 3,

This problem continues the Davis Consulting, Inc. situation from Problem P9-42. Davis Consulting invests its temporary excess cash in a brokerage account. On November 3, 2014, Davis purchased 500 shares of Mauve Co. common stock for $ 20 per share. On December 31, 2014, Mauve’s common stock was trading at $ 19 per share. Assume Davis records the stock as a trading investment.

Requirements

1. Journalize the acquisition of Mauve stock on November 3, 2014.

2. Journalize any entries, if required, at December 31, 2014.

3. On January 25, Davis sold the Mauve stock for $ 20.50 per share. Journalize the sale.

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