Journal entries to record investment transactionsA 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. 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 fieldsand enter 0 in the amount fields.AccountDebitCreditInvestments12,400Cash12,400To record entry on June 30.Investments400Net realized and unrealized galns and losses on Investments400To record entry on December 31.Cash11,200Net realized and unrealized galns and losses on Investments1,600Investments12,800To record entry on November 30 for sale of stock.Cash400Investments400 xTo 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 fieldsand enter 0 in the amount fields.AccountDebitCreditInvestments12,400Cash12,400To record entry on June 30.Investment valuation account400Change In net unrealized gains and losses in Investments (unrestricted)To record entry on December 31.400Cash11,200Change in net unrealized gains and losses in Investments (unrestricted)1,60012,800 xTo record entry on November 30 for sale of stock.Change In net unrealized galns and losses In Investments (unrestricted)400Investment valuation account400To record entry for valuation adjustment on November 30.>>> >>>> > > >>>>> >> > >>>

Note: As per protocol, we provide one question only but as you have asked two questions under a single upload of questions the journal entries under government hospitals and not-for-profit organizations are totally different. Journal entries are recorded at the time of business monetary transaction takes place in the business, not at the time when a promise is made. A journal entry is recorded in the journal book of the respective business.Journal entries taking is assuming it is a governmental hospital: Date Accounts Title & Explanation L.F Debit Credit June 30 Investment $12,400 To Cash $12,400 (Being 100 shares purchased) December 31 Investment $400 To Net realized and unrealized gains and losses on investment $400 (Being net realized and unrealized gains and losses on investment on shares as the value of the investment went to $12,800 from $12,400 which is a $400 unrealized gain) November 30 Cash $11,200 Net realized and unrealized gains and losses on investments $1,200 To Investment $12,400 (Being investment sold and as a result incurs loss of $1,200 [$12,400 - $11,200])