Cooke Corporation sells 400 shares of common stock being held as a short-term investment. The shares were acquired six months ago at a cost of $55 a share. Cooke sold the shares for $40 a share. The entry to record the sale is Cash

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Cooke Corporation sells 400 shares of common stock being held as a short-term investment. The shares were acquired six months ago at a cost of $55 a share. Cooke sold the shares for $40 a share. The entry to record the sale is Cash 16,000 Stock Investments 16,000 Cash 22,000 Gain on Sale of Stock Investments 6,000 Stock Investments 16,000 Stock Investments 16,000 Loss on Sale of Stock Investments 6,000 Cash 22,000 Cash 16,000 Loss on Sale of Stock Investments 6,000 Stock Investments

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