Company A makes the following investments on July 1, 2014 (Campany A lacks of significant influence)
Initial value Discount Value on Dec 31, 14 Dividends or interest pmt Market Rate Intentions Reporting Category
a. Apple stock 10,000 n/a 9,000 None n/a Sell in 8 days
b. Google stock 25,000 n/a 22,000 500 n/a Sell in 2 years
c. Disney bonds 15,000 2,400 18,000 600 10% Hold until matures
d. GM bonds 40,000 1,000 35,000 1,720 9% Sell in 5 years
note: bonds pay interest semi-annually starting on Dec 31
1. Initial entries Investment Cash Discount
b.
c.
d.
2. Investment income Cash Discount Investment Revenue
a.
b.
c.
d.
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