Fox Company made the following transactions in the common stock of NOP Company: July 10, 2009 Purchased

Question:

Fox Company made the following transactions in the common stock of NOP Company:

July 10, 2009 Purchased 10,000 shares at $45 per share.

Sept. 29, 2010 Sold 2,000 shares for $51 per share.

Aug. 17, 2011 Sold 2,500 shares for $33 per share.

The end-of-year market prices for the shares were as follows:

December 31, 2009 $47 per share

December 31, 2010 39 per share

December 31, 2011 31 per share

Instructions: Prepare the necessary entries for 2009, 2010, and 2011, assuming the NOP stock is classified as a trading security.

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...