17 Jan Investment gains and losses have to be recognized
Investment gains and losses have to be recognized as they occur and have to be assigned to the appropriate category of net assets. During 2013, the Pulmonary Disease Foundation received a contribution of marketable securities that were to be placed in a permanent endowment fund. Neither donor stipulations nor applicable state law require that capital gains or increases in value be added to the endowment principal. The income from the securities was to be restricted for research in pulmonary diseases. The following schedule indicates the value of the securities as of the date of receipt (labeled cost”), the fair value at December 31, 2013, and the unrealized gains and losses of the year. 1. Prepare a journal entry to record the unrealized net gain during the year. Be sure to indicate the type of fund (e.g., unrestricted, temporarily restricted, and permanently restricted) in which the entry would be made. Assuming no other transactions and no other assets in the relevant funds, show how the investments would be reported on the foundation’s year-end 2013 balance sheet. 2. During 2014, the foundation sold the North-west Industries securities for $280. Prepare appropriate journal entries to record the sale. Credit the gain to the same account in which you credited the unrealized appreciation of 2013. 3. As of December 31, 2014, the market value of the Campbell Corp. securities had increased to $320, and that of the St. Regis, Inc., securities to $180. Prepare a journal
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.