On August 1, Dogwood Company Buys 2,000 Ordinary Shares of XYZ

On August 1, Dogwood Company buys 2,000 ordinary shares of XYZ for $60,000 cash plus brokerage fees of $1,200.On December 1, the share investments are sold for $76,000 in cash.Which of the following are the correct journal entries to record for the purchase and sale of the shares?

A) $\begin{array} { lll }\text { Aug. 1}&\text { Cash }& 61,200\\ &\text {Share Investments }&&61,200 \\ \text {Dec. 1}&\text { Cash }&76,000 \\& \text {Share Investments }&&61,200 \\& \text {Gain on Sale of Share Investments }&&14,800 \\\\\end{array}$

B) $\begin{array} { lll }\text { Aug. 1}&\text { Cash }& 61,200\\& \text {Share Investments }&&61,200 \\ \text {Dec. 1}&\text { Cash }&76,000 \\& \text {Share Investments }&&61,200 \\& \text {Gain on Sale of Share Investments }&&14,800 .\\\\\end{array}$

C) $\begin{array} { lll }\text { Aug. 1}&\text { Cash }& 61,200\\& \text {Share Investments }&&61,200 \\ \text {Dec. 1}&\text { Cash }&76,000 \\ &\text {Share Investments }&&61,200 \\ &\text {Gain on Sale of Share Investments }&&14,800. \\\\\end{array}$

D) $\begin{array} { lll }\text { Aug. 1 }&\text { Cash }& 61,200\\ &\text {Share Investments }&&61,200 \\ \text {Dec. 1 }&\text { Cash }&76,000 \\& \text {Share Investments }&&61,200 \\& \text {Gain on Sale of Share Investments }&&14,800 \\\\\end{array}$