Mr. Taliaferro is studying for an accounting test and has developed the following questions about investments.

1- What are three reasons companies purchase debt or stock securities investments? 2- Why would a corporation have excess cash not needed for operations? 3- What is the typical investment when investing cash for short periods of time? 4- What are the typical investments when investing cash to generate earnings? 5- Why would a company invest in securities that provide no current cash flows? 6- What is the typical stock investment when investing cash for strategic reasons?

Instructions:

Journalize debt investment transactions and accrue interest.