Exercise 7-14: On August 15, 2016, Cubs Corp. purchases 5,000 shares of common stock in Sox Inc. at a market price of $15 per share. In addition, Cubs pays brokerage fees of $1,000. On October 20, 2016, Cubs sells the Sox stocks for $10 per share. Prepare all necessary entries on Cub’s books in connection with the investment beginning with the purchase of the common stock on August 15, 2016, and the sale on October 20, 2016.

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.