A purchase of common stock of Blue Wave Corporation for $14,500 was sold three months later for $15,000. The entry to record the sale would include a
A) debit to Cash of $14,500.
B) credit to Gain on Sale of Stock Investments of $500.
C) credit to Stock Investments of $15,000.
D) credit to Interest Revenue of $500.

Question

Quizplus · Accepted Answer

The sale of the stock for $15,000 results in a gain of $500 ($15,000 - $14,500), which should be credited to Gain on Sale of Stock Investments.

A Purchase of Common Stock of Blue Wave Corporation for $14,500