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Investment in Stock
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.
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