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    chels_jo05's Avatar
    chels_jo05 Posts: 1, Reputation: 1
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    #1

    Nov 12, 2007, 05:40 PM
    Journal Entries for sale of Short-term investments
    If I bought a short term investment for $5,000 the journal entry is:

    Mktbl Securities $5,000
    Cash $5,000

    Now I sold the short-term investment securities purchased and the net proceeds of $5,500 were received in cash... what journal entry is needed?

    Cash $5,500
    Mktbl Securities $5,000
    Gain $500

    Is this correct? Because for some reason I cannot get my trial balance to balance!

    Thanks!
    larro's Avatar
    larro Posts: 2, Reputation: 1
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    #2

    Dec 1, 2008, 06:59 AM
    When do you recognise revenue on the sale of long term investment when there is a deferred payment.

    If I receive $4.50 and must receive $6.15 in 2011. How would I journalise the money received now and would I record any gain now
    larro's Avatar
    larro Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Dec 1, 2008, 07:00 AM

    When do you recognise revenue on the sale of long term investment when there is a deferred payment.

    If I receive $4.50 and must receive $6.15 in 2011. How would I journalise the money received now and would I record any gain now
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