On August 1, Masters Company buys 2000 shares of ABD common stock for $72500 cash. On December 1, the stock investments are sold for $75000 in cash. Which of the following are the correct journal entries to record for the purchase and sale of the common stock?
(a) Aug. 1 Cash 72500 Stock Investments 72500 Dec. 1 Cash 75000 Stock Investments 72500 Gain on Sale of Stock Investments 2500
(b) Aug. 1 Stock Investments 72500 Cash 72500 Dec. 1 Cash 75000 Stock Investments 72500 Gain on Sale of Stock Investments 2500
(c) Aug. 1 Cash 72500 Stock Investments 72500 Dec. 1 Stock Investments 75000 Cash 72500 Gain on Sale of Stock Investments 2500
(d) Aug. 1 Stock Investments 72500 Cash 72500 Dec. 1 Stock Investments 75000 Cash 72500 Gain on Sale of Stock Investments 2500
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