Investment in Stock
On August 15, 2008, 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, 2008, Cubs
sells the Sox stock for $10 per share.
Prepare all necessary entries on Cubs’s books in connection with the investment beginning with
the purchase of the common stock on August 15, 2008 and the sale on October 20, 2008.