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 financialstatements, 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.AccountDebitCreditInvestments12,400Cash12,400 vTo record entry on June 30.No debit entry requiredChange in net unrealized gains and losses in investments (unrestricted)12,800 xTo 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.1,600Change in net unrealized gains and losses in investments (unrestricted)To record entry for valuation adjustment on November 30.1,600 xO O> >> > >>>

Journal entry is the process of documenting commercial transactions for the first time in the books…

pital purchased 100 shares of stock on June 30, for $12,400, using its resources without donor restrictions. On December 31, th ments, the stock's fair value was $12,800. On the following November 30, the hospital sold the stock for $11,200. pare the journal entries for all related transactions, assuming this was a governmental hospital. ho entry is necessary, select 'No debit (or credit) entry needed' in the account fields d enter 0 in the amount fields. Account Debit Credit stments 12,400 ash record entry on June 30. ebit entry required 12,400 hange In net unrealized galns and losses in Investments (unrestricted) 12,800 x record entry on December 31. 11,200 ealized and unrealized gains and losses on Investments 1,600 vestments 12,800 record entry on November 30 for sale of stock. > > > > > > >

pital purchased 100 shares of stock on June 30, for $12,400, using its resources without donor restrictions. On December 31, th ments, the stock's fair value was $12,800. On the following November 30, the hospital sold the stock for $11,200. pare the journal entries for all related transactions, assuming this was a governmental hospital. ho entry is necessary, select 'No debit (or credit) entry needed' in the account fields d enter 0 in the amount fields. Account Debit Credit stments 12,400 ash record entry on June 30. ebit entry required 12,400 hange In net unrealized galns and losses in Investments (unrestricted) 12,800 x record entry on December 31. 11,200 ealized and unrealized gains and losses on Investments 1,600 vestments 12,800 record entry on November 30 for sale of stock. > > > > > > >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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