祛痘有妙招 哪些面膜可以快速淡化痘印

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1、Prepared byMarianne Bradford, Ph.D.Bryant CollegeJohn Wiley & Sons, Inc.祛痘 http:/ studying this chapter, you should be able to:1 Discuss why corporations invest in debt and stock securities.2 Explain the accounting for debt investments.3 Explain the accounting for stock investments.4 Describe the us

2、e of consolidated financial statements.5 Indicate how debt and stock investments are valued and reported on the financial statements.6 Distinguish between short-term and long-term investments.CHAPTER 17 INVESTMENTSPREVIEW OF CHAPTER 17InvestmentsWhy Corporations InvestAccounting for Debt Investments

3、Recording acquisition of bondsRecording bond interestRecording sale of bonds PREVIEW OF CHAPTER 17InvestmentsAccounting for Stock InvestmentsHoldings less than 20%Holdings between 20% and 50%Holdings of more than 50% Valuation and Reporting of InvestmentsCategories of securitiesBalance sheet present

4、ationRealized and unrealized gain or lossComprehensive balance sheet STUDY OBJECTIVE 1Discuss why corporations invest in debt and stock securities.ILLUSTRATION 17-1 TEMPORARY INVESTMENTS AND THE OPERATING CYCLECashTemporary InvestmentsAccounts ReceivableInventoryInvestSellv At the end of their opera

5、ting cycles, many companies may have temporarily idle cash on hand until the start of the next operating cycle.v These companies may invest the excess funds to earn a greater return.v The relationship of temporary investments to the operating cycle is depicted below. ILLUSTRATION 17-2 WHY CORPORATIO

6、NS INVESTReasonTypical InvestmentTo house excess cash until neededLow-risk, high-liquidity, short-term securities such as government-issued securitiesTo generate earningsI need 1,000 Treasury bills by tonight!Debt securities (banks and other financial institutions); and stock securities (mutual fund

7、s and pension funds)To meet strategic goalsStocks of companies in a related industry or in an unrelated industry that the company wishes to enterSTUDY OBJECTIVE 2Explain the accounting for debt investments.ACCOUNTING FOR DEBT INVESTMENTS RECORDING AQUISITION OF BONDSDebt investments are investments

8、in government and corporation bonds. In accounting for debt investments, entries are required to record the 1 acquisition, 2 interest revenue, and 3 sale. At acquisition the cost principle applies. Cost includes all expenditures necessary to acquire these investments. Kuhl Corporation acquires 50 Do

9、an Inc. 12%, 10-year, $1,000 bonds on January 1, 2002, for $54,000, including brokerage fees of $1,000. The entry to record the investment is:DateAccount Titles and ExplanationDebitCreditJan. 1Debt Investments Cash (To record purchase of 50 Doan Inc. bonds)54,000 54,000ACCOUNTING FOR DEBT INVESTMENT

10、S RECORDING BOND INTERESTThe bonds pay $3,000 interest on July 1 and January 1 ($50,000 x 12% x ). The July 1 entry is:It is necessary to accrue $3,000 interest earned since July 1 at year-end. The December 31 entry is:DateAccount Titles and ExplanationDebitCreditJuly 1Cash Interest Revenue (To reco

11、rd receipt of interest on Doan Inc. bonds)3,000 3,000DateAccount Titles and ExplanationDebitCreditDec. 31Interest Receivable Interest Revenue (To accrue interest on Doan Inc. bonds)3,000 3,000ACCOUNTING FOR DEBT INVESTMENTS RECORDING BOND INTERESTDateAccount Titles and ExplanationDebitCreditJan. 1Ca