【正文】 11:28:3211:28:3211:282/6/2023 11:28:32 AM ? 1越是沒(méi)有本領(lǐng)的就越加自命不凡。 2023年 2月 6日星期一 上午 11時(shí) 28分 32秒 11:28: ? 1比不了得就不比，得不到的就不要。 :28:3211:28Feb236Feb23 ? 1故人江海別，幾度隔山川。 2023年 2月 6日星期一 11時(shí) 28分 32秒 11:28:326 February 2023 ? 1空山新雨后，天氣晚來(lái)秋。勝人者有力，自勝者強(qiáng)。 2023年 2月 6日星期一 11時(shí) 28分 32秒 11:28:326 February 2023 ? 1做前，能夠環(huán)視四周；做時(shí)，你只能或者最好沿著以腳為起點(diǎn)的射線向前。 2023 John Wiley Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written consent of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley Sons, Inc. The purchaser may make backup copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. CHAPTER 17 INVESTMENTS ? 靜夜四無(wú)鄰，荒居舊業(yè)貧。 2023年 2月 6日星期一 上午 11時(shí) 28分 32秒 11:28: ? 1楚塞三湘接，荊門九派通。 2023年 2月 上午 11時(shí) 28分 :28February 6, 2023 ? 1業(yè)余生活要有意義，不要越軌。 11:28:3211:28:3211:282/6/2023 11:28:32 AM ? 1成功就是日復(fù)一日那一點(diǎn)點(diǎn)小小努力的積累。Accounting Principles, 6e Weygandt, Kieso, Kimmel Prepared by Marianne Bradford, . Bryant College John Wiley Sons, Inc. After 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 use of consolidated financial statements. 5 Indicate how debt and stock investments are valued and reported on the financial statements. 6 Distinguish between shortterm and longterm investments. CHAPTER 17 INVESTMENTS PREVIEW OF CHAPTER 17 Investments Why Corporations Invest Accounting for Debt Investments Recording acquisition of bonds Recording bond interest Recording sale of bonds ? ? ? PREVIEW OF CHAPTER 17 Investments Accounting for Stock Investments Holdings less than 20% Holdings between 20% and 50% Holdings of more than 50% ? ? ? Valuation and Reporting of Investments Categories of securities Balance sheet presentation Realized and unrealized gain or loss Comprehensive balance sheet ? ? ? ? STUDY OBJECTIVE 1 Discuss why corporations invest in debt and stock securities. ILLUSTRATION 171 TEMPORARY INVESTMENTS AND THE OPERATING CYCLE Cash Temporary Investments Accounts Receivable Inventory Invest Sell ? At the end of their operating cycles, many panies may have temporarily idle cash on hand until the start of the next operating cycle. ? These panies may invest the excess funds to earn a greater return. ? The relationship of temporary investments to the operating cycle is depicted below. ILLUSTRATION 172 WHY CORPORATIONS INVEST Reason Typical Investment To house excess cash until needed Lowrisk, highliquidity, shortterm securities such as governmentissued securities To generate earnings I need 1,000 Treasury bills by tonight! Debt securities (banks and other financial institutions)。 :28:3211:28Feb236Feb23 ? 1世間成事，不求其絕對(duì)圓滿，留一份不足，可得無(wú)限完美。 2023年 2月 6日星期一 11時(shí) 28分 32秒 11:28:326 February 2023 ? 1一個(gè)人即使已登上頂峰，也仍要自強(qiáng)不息。 :28:3211:28:32February 6, 2023 ? 1意志堅(jiān)強(qiáng)的人能把世界放在手中像泥塊一樣任意揉捏。). The July 1 entry is: It is necessary to accrue $3,000 interest earned since July 1 at yearend. The December 31 entry is: D a t e A c c o u n t T i t l e s a n d E x p l a n a t i o n D e b i t C r e d i tJ u l y 1 C a s h I n t e r e s t R e v e n u e (T o r e c o r d r e c e ip t o f in te r e s t o n D o a n In c . b o n d s )3,000 3,000 Date Account Titles and Explanation Debit Credit Dec. 31 Interest Receivable Interest Revenue (To accrue interest on Doan Inc. bonds) 3,000 3,000 ACCOUNTING FOR DEBT INVESTMENTS RECORDING BOND INTEREST D a t e A c c o u n t T i t l e s a n d E x p l a n a t i o n D e b i t C r e d i tJ a n . 1 C a s h I n t e r e s t R e c e i v a b l e (T o r e c o r d r e c e ip t o f ac cr u e d in te r e s t)When the interest is received on January 1, the entry is: 3,000 3,000 ACCOUNTING FOR DEBT INVESTMENTS RECORDING SALE OF BONDS Any difference between the proceeds from the sale (sales price less brokerage fees) and the cost of the bonds is recorded as a gain or loss. Kuhl Corporation receives proceeds of $58,000 on the sale of the Doan Inc. bonds on January 1, 2023, after receiving the interest due. Since the securities cost $54,000, a gain of $4,000 has been realized. The entry to record the sale is: Date Account Titles and Explanation Debit CreditJan. 1 Cash Debt Investm ents Gain on Sale of Debt Investm ents ( To r ecord s ale o f D oan In c. b onds) 58,000 54,000 4,000 STUDY OBJECTIVE 3 Explain the accounting for stock investments. I n v e s t o r 抯 O w n e r s h i p P r e