财务会计双语教学.pptx

CHAPTER13INVESTMENTSSTUDYOBJECTIVESAfterstudyingthischapter,youshouldunderstand:ountingforstockinvestmentsShort--terminvestmentsReasonTypicalInvestmentTohouseexcesscashuntilneededLow-risk,high-liquidity,short-termsecuritiessuchasgovernment-issuedsecuritiesTogenerateearningsIneed1,000Treasurybillsbytonight!Debtsecurities(banksandotherfinancialinstitutions);andstocksecurities(mutualfundsandpensionfunds)panywishestoenterSTUDYOBJECTIVE1WHYCORPORATIONSINVESTDebtinvestments=,interestrevenue,%,10-year,$1,000bondsonJanuary1,2006,for$54,000,includingbrokeragefeesof$1,:()54,00054,$2,000interestonJuly1andJanuary1($50,000x8%x½).TheJuly1entryis:rue$2,000interestearnedsinceJuly1atyear-:ountTitlesandExplanationDebitCreditJuly1CashInterestRevenue()2,0002,()2,0002,(ruedinterest)WhentheinterestisreceivedonJanuary1,theentryis:2,0002,000RECORDINGBONDINTERESTOnJanuary1,2007,proceedsof$58,:()58,00054,0004,000RECORDINGSALEOFBONDSPROCEEDS–COST=GAINorLOSSREVIEWQUESTIONOnFebruary6,panysellsdebtinvestmentscosting$26,000for$28,,000DebtInvestments2,000GainonSale28,ountsDateProceeds–Cost=GainorLossInvestor’sOwnershipPresumedInterestinInvestee’monStockonInvesteeGuidelinesLessthan20%InsignificantCostmethodBetween20