Debit investments are investments in government and corporation bonds. In accounting for debt investments, companies make entries to record (1) the acquisition, (2) the interest revenue, and (3) the sale.
Companies record investments in debt securities when they purchase bonds, receive or accrue interest, and sell the bonds. They report gains or losses on the sale of bonds in the “Other revenues and gains” or “other expenses and losses” sections of the income statement.
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- Voucher register & Check register
An employee in accounts payable records the voucher which in a journal called a voucher register and files it according to the date on which it is to be paid.
- Normal balance
The normal balance of an account is on the side where an increase in the account is recorded. Debits to a specific asset account should exceed the credits to that account.
- Land improvements
Land improvements are structural additions made to land. Examples are drive ways, parking lots, fences, landscaping, and underground sprinklers.
- Trademark /Trade names
A trademark or trade name is a word, phrase, jingle, or symbol that identifies a particular enterprise or product.
Bonds are a form of interest-bearing notes payable issued by corporations, universities, and governmental entities.
- Dishonored note
A dishonored note is a note that is not paid in full at maturity. A dishonored note receivable is no longer negotiable.
- Conversion costs
Conversion costs consists of the sum of labor costs and overhead costs. In other words, both the dry and liquid ingredients (materials) are added at the beginning...