Đầu tư kinh doanh đầu tư được bán trong tương lai rất gần với các ý định tạo ra lợi nhuận trên giá để bán các khoản đầu tư đầu tư khác hơn so với kinh doanh chứng khoán trong đó nhà đầu tư không thể ảnh hưởng đáng kể trong đầu tư. | Investments and International Operations Chapter 16 Stock Price Information for McDonald’s Corporation: 52 weeks High Low Stock Symbol Dividend Volume 100s Close 4956 2981 MCD .20 2067670 2988 The financial community quotes stock prices in dollars and cents. Stock Prices Trading investments are investments to be sold in the very near future with the intent of generating profits on price changes. Available-for-sale investments are investments other than trading securities in which the investor cannot exercise significant influence over the investee. Trading and Available-For-Sale Investments Objective 1 Account for Trading Investments. Accounting for Trading Investments Example Assume that on October 23, Des Moines, Inc., had purchased 600 shares of Bowie Corp. stock for $30,000. Des Moines' management team hopes to sell this stock within three months. What is the entry? Accounting for Trading Investments Example Bowie pays a cash dividend of $ per share on November 14. October 23 Short-Term Investment 30,000 Cash 30,000 Purchased investment Accounting for Trading Investments Example November 14 Cash 840 Dividend Revenue 840 Received cash dividend What is Des Moines’ entry to receive this cash dividend? Reporting Trading Investments Trading investments are reported on the balance sheet at current market value. Assume that Bowie’s stock has decreased in value. On December 31, Des Moines' investment in Bowie is worth $25,000 ($5,000 less than the purchase price). Reporting Trading Investments December 31 Loss on Trading Investment 5,000 Short-term Investment 5,000 Adjusted trading investment to market value What is the adjusting entry that Des Moines would make at year end? Reporting Trading Investments Balance Sheet (partial): ASSETS Current assets: Short-term investments, at market value $25,000 Income Statement (partial): Other gains and losses: Gain (loss) on trading investment $(5,000) Reporting Trading Investments When a company sells a trading investment, . | Investments and International Operations Chapter 16 Stock Price Information for McDonald’s Corporation: 52 weeks High Low Stock Symbol Dividend Volume 100s Close 4956 2981 MCD .20 2067670 2988 The financial community quotes stock prices in dollars and cents. Stock Prices Trading investments are investments to be sold in the very near future with the intent of generating profits on price changes. Available-for-sale investments are investments other than trading securities in which the investor cannot exercise significant influence over the investee. Trading and Available-For-Sale Investments Objective 1 Account for Trading Investments. Accounting for Trading Investments Example Assume that on October 23, Des Moines, Inc., had purchased 600 shares of Bowie Corp. stock for $30,000. Des Moines' management team hopes to sell this stock within three months. What is the entry? Accounting for Trading Investments Example Bowie pays a cash dividend of $ per share on November 14. October 23
