Journal entries to record investment transactions A hospital purchased 100 shares of stock on June 30, for $12,400, using its resources without donor restrictions. On December 31, the date of its financial statements, the stock’s fair value was $12,800. On the following November 30, the hospital sold the stock for $11,200.
Journal entries to record investment transactions A hospital purchased 100 shares of stock on June 30, for $12,400, using its resources without donor restrictions. On December 31, the date of its financial statements, the stock’s fair value was $12,800. On the following November 30, the hospital sold the stock for $11,200.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A hospital purchased 100 shares of stock on June 30, for $12,400, using its resources without donor restrictions. On December 31, the date of its financial statements, the stock’s fair value was $12,800. On the following November 30, the hospital sold the stock for $11,200.
Transcribed Image Text:a) Prepare the journal entries for all related transactions, assuming this was a governmental hospital.
If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields
and enter 0 in the amount fields.
Account
Debit
Credit
Investments
12,400
Cash
12,400
To record entry on June 30.
Investments
400
Net realized and unrealized galns and losses on Investments
400
To record entry on December 31.
Cash
11,200
Net realized and unrealized galns and losses on Investments
1,600
Investments
12,800
To record entry on November 30 for sale of stock.
Cash
400
Investments
400 x
To record entry for valuation adjustment on November 30.
b) Prepare the journal entries for all related transactions, assuming this was a nonprofit hospital.
If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields
and enter 0 in the amount fields.
Account
Debit
Credit
Investments
12,400
Cash
12,400
To record entry on June 30.
Investment valuation account
400
Change In net unrealized gains and losses in Investments (unrestricted)
To record entry on December 31.
400
Cash
11,200
Change in net unrealized gains and losses in Investments (unrestricted)
1,600
12,800 x
To record entry on November 30 for sale of stock.
Change In net unrealized galns and losses In Investments (unrestricted)
400
Investment valuation account
400
To record entry for valuation adjustment on November 30.
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