Please prepare the jornal entries as well as describe the effect on income and amounts effected. Also please write a memo including what went wrong and how it affected income.

26A,B While reviewing broker statements you noticed that 1,000 shares of Dog Co. stock were sold for $8,000. When you traced the receipt of the proceeds, you noted that it was recorded in the sales account. In addition, the cost of the stock, $24,000, had not been removed from the books and no gain or loss had been calculated. 26A. Reverse the original journal entry, if necessary. 26B. Record the journal entry that should have been made, if necessary During the year, the corporation bought $40,000 worth of dot.com stock (based on a hot tip the president received from his broker). The president was expecting to make a quick gain and sell the stock due to an expected merger. 27. Unfortunately, the merger never happened and the stock value crashed to $4,000. The stock is still owned. The bookkeeper, did not make any entries other than to record the original purchase of the stock as an Investment: trading securities. Record the journal entry that should have been made, if necessary