On January 7, 2018, Webb Industries purchased 1,000 shares of Class A common stock in Bloomberg Corporation for $50,000. Webb does not have significant influence or control over Bloomberg. Although Class A shares are not actively traded, Class B shares are traded and are nearly identical aside from being publicly traded. At the end of 2018, Class B shares are trading for $56 per share. Webb makes the appropriate election to measure the investment based on observable price changes for similar securities. On December 12, 2019, Webb Industries sells the Bloomberg stock for $60,000. As of the end of 2019, Webb has no investments in equity securities.
Prepare the journal entries to record the purchase of the stock, the sales of the stocks, and any required adjustments at the end of 2018 and 2019.

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The Answer of On January 7, 2018, Webb Industries purchased 1,000 shares of Class A common stock in Bloomberg Corporation for $50,000. Webb does not have significant influence or control over Bloomberg. Although Class A shares are not actively traded, Class B shares are traded and are nearly identical aside from being publicly traded. At the end of 2018, Class B shares are trading for $56 per share. Webb makes the appropriate election to measure the investment based on observable price changes for similar securities. On December 12, 2019, Webb Industries sells the Bloomberg stock for $60,000. As of the end of 2019, Webb has no investments in equity securities.
Prepare the journal entries to record the purchase of the stock, the sales of the stocks, and any required adjustments at the end of 2018 and 2019.

On January 7, 2018, Webb Industries Purchased 1,000 Shares of Class