E$13-35.($Investment transactions and events$)$

Prepare journal entries to record the following transactions and events, based on the assumption that the nonprofit, with a June $30$ fiscal year$-$end, uses a single account to record all unrealized and realized investment gains and losses. Then, prepare journal entries for Events $2$ and $3,$ based on the assumption that the nonprofit separates unrealized from realized investment gains and losses.

On July $15,$ a nonprofit received a donation of Apple stock that had a fair value of $$75,000$ at the time of the donation. The donor told the nonprofit that the stock could be sold and used only to finance a particular research project.

On December $31,$ when the nonprofit closed its books, the stock had a fair value of $$76,500.$

On February $15,$ the nonprofit sold the stock for $$76,000.$

On March $15,$ the nonprofit spent the entire $$76,000$ on the research project for which the donor made the gift.