On August 1, Shaw Company buys 1,000 shares of Estrada common stock for ( $ 37,000 ) cash. On December 1 , Shaw sells the stock investments for ( $ 40,000 ) in cash. Which of the following statement is correct? A. The journal entry to record the purchase of the common stock on August ( 1^{ ext {st }} ) Stock Investments ( quad 37,000 ) Revenue [ 37,000 ] B. The journal entry to record the sale of the common stock on December ( 1^{ ext {st }} ) Cash 40,000 ( egin{array}{ll} ext { Stock Investments } & 37,000 \ ext { Gain on Sale of Stock Investments } & 3,000end{array} ) C. The journal entry to record the sale of the common stock on December ( 1^{ ext {st }} ) Cash 40,000 ( egin{array}{ll} ext { Stock Investments } & 37,000 \ ext { Loss on Sale of Stock Investments } & 3,000end{array} ) D. The journal entry to record the sale of the common stock on December ( 1^{ ext {st }} ) Cash 40,000 Stock Investments [ egin{array}{c} 37,000 \ 3,000 end{array} ] Revenue

On August 1, Shaw Company buys 1,000 shares of Estrada common stock for $37,000 cash. On December 1, Shaw sells the stock investments for $40,000 in cash. Which of the following statement is correct? A The joumal entry to record the purchase of the common stock on August 1st Stock investments 37,000 Revenue 37,000 8. The journal entry to record the sale of the common stock on December 1st Cash 40,000 \begin{tabular}{ll} Slock investments & 37,000 \\ Gain on Sale of Stock investments 3,000 \end{tabular} C. The journal enty to record the saie of the common stock on December 1tt Cash 40,000 StockInvesimentsLosionSaleofStockinvesiments37,0003,000 D. The journat entry to record the saie of the common stock on December 1tht Cash 40,000 Siock Investments 37,0003,000 Revenue 3,000