Accounting for Long Term and Short Term Cap Gains

mchelvan · #1 Feb 25, 2008, 02:15 PM

How do I properly account for Long Term and Short Term Capital Gains from investments (stocks and bonds)? I am unsure of which account to use and the proper treatment on the financial statements. We (the Company) have not been involved in investing much until this year. Feel free to assume I know next to nothing - it's been a long time since Intermediate Accounting I & II.
Thanks,
Melinda

MaggieMouse · Feb 26, 2008, 09:56 AM

Accounting treatment depends on the purpose of holding these investments. Need more detail information to determine which method to use.

mchelvan · Feb 26, 2008, 09:58 AM

The reason for the investments is investment income.



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