Reference no: EM133075827

Question - Investment transactions and events - Prepare journal entries to record the following transactions and events, based on the assumption that the non-profit 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 non-profit separates unrealized from realized investment gains and losses.

1. On July 15, 2018, a non-profit received a donation of Apple stock that had a fair value of $75,000 at the time of donation. The donor told the non-profit that the stock could be sold and used only to finance a particular research project.

2. On December 31, 2018, when the non-profit closed its books, the stock had a fair value of $76,500.

3. On February 15, 2019, the non-profit sold the stock for $76,000.

4. On March 15, 2019, the non-profit spent the entire $76,000 on the research project for which the donor made the gift.