Question
During the July 15 board of directors meeting, the Board of Directors chose to invest the excess cash held by the organization. This decision is
During the July 15 board of directors meeting, the Board of Directors chose to invest the excess cash held by the organization. This decision is in alignment with the organization's investment policy. The investment is in a low-risk portfolio of stock and the initial purchase price was $550,000 (average cost of $55 per share). During the November 15 board meeting, the Board of Directors decides to sell a portion of the investment portfolio they established during the July 15 board meeting. They sell 2500 shares of the portfolio at $65 per share. The proceeds from the sale are then reinvested into another portfolio with a cost that equals the proceeds just received. Prepare the journal entries to record these transactions.
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