Temporary Investments
- No premium or discount is amortized upon interest receipt; term is too short. Any gain or loss is ordinary.
- Sale of short-term security:
Cash XX
Loss (as needed) XX
Bonds Receivable XX
Interest Revenue XX
Gain (as needed) XX
- Cost flow assumptions:
- Book--Specific Identification, Weighted Average or FIFO
- Tax--Specific Identification, FIFO