Reread the material on reporting investment gains and losses in the section “Investment Returns,” and consider the journal entries you made in E13- 11. Which of the two reporting methods (if either) do you think is the more informative? Which of the two reporting methods (if either) do you think better expresses the hospital’s financial performance? Give reasons for your answers.
In E13- 11
On December 31, 2011, the date of its financial statements, the stock’s fair value was $ 3,200. On November 30, 2012, the hospital sold the stock for $ 2,800. Assuming it is a governmental hospital, prepare journal entries to record all the transactions and events related to this investment. Then, assuming it is a not- for- profit hospital, prepare journal entries to record all the transactions and events related to this investment.