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 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 entry to record the unrealized gain during the year. Show how the foundation would report the investment portfolio on its December 31, 2014, balance sheet. You may combine the cash and securities of each type of fund into a single account.