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 stocks fair value was $12,800. On the following November 30, the hospital sold the stock for $11,200.

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 Credit Debit 12,400 0 12,400 400 0 0 400 Investments Cash To record entry on June 30. Investments Net realized and unrealized gains and losses on Investments To record entry on December 31. Cash Net realized and unrealized gains and losses on investments Investments To record entry on November 30 for sale of stock. Change in net unrealized gains and losses In Investments (unrestricted) Investment valuation account To record entry for valuation adjustment on November 30. 0 11,200 1,600 0 0 12,800 V OX 400 0 400 x Debit 400 0 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 in the amount fields. Account Credit Investments 12,400 Cash 0 12,400 To record entry on June 30. Investment valuation account Change in net unrealized gains and losses In Investments (unrestricted) To record entry on December 31. Cash 11,200 Net realized and unrealized gains and losses on Investments 1,600 OX 0 12,800 x To record entry on November 30 for sale of stock. Change in net unrealized gains and losses In Investments (unrestricted) 400 Investment valuation account 0 400 To record entry for valuation adjustment on November 30. V 0 400 0 0