Marketable Securities – Ford Online Accounting Manual

Assets

MARKETABLE SECURITIES		ASSET ACCOUNT
		1040

Cost, including brokerage fees, of readily marketable securities owned by the dealership.

			Jrnl.	Dr.	Cr.

Common stock purchased			CD
	Marketable Securities			1040
		Cash in Bank—General			1001

Common stock sold at a gain			CR
	Cash in Bank—General			1001
		Marketable Securities			1040
		Gain or Loss—Sale of Fixed Assets & Securities			9250

Subsidiary records should support this account, containing a description of the security, date acquired, cost, date sold, proceeds from sale, and gain or loss on disposition.
Interest received on securities should be credited to Account 9150, Interest Income.
Cash dividends received on securities should be credited to Account 9200, Dividend Income.
Investments in affiliated companies should be carried in Account 1831, Investments—Subsidiaries & Affiliates.
Investments in securities that are not readily marketable, other than those of subsidiaries and affiliates, should be carried in Account 1830, Other Assets.