Exercise 7-14 Investment in Stock

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