ENTRY NO. 34 – SALE OR MATURITY OF INVESTMENTS - 10534

(Revised: 12/2021)

Purpose: To record the investments when they mature or are sold. 

 

References: SAM sections 8477.32, 10424, 10425, 10526, and 10527

 

Investments Mature or Are Sold

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	1104000	1140	Cash in State Treasury	a
Debit	1501300	2014	Discount on Debt Securities	b
Credit	1501100	2011	Investments in Debt Securities at Cost	c
Credit	1501000	2012	Investment in Debt Securities	d
Credit	1501200	2013	Premiums on Debt Securities	e
Credit	1503000	2021	Investments in Common Stock	f
Credit	1503100	2022	Investments in Preferred Stock	g
Credit	4xxxxxx	8000	Revenue	h

 

Note:

1. Proceeds from sale or maturity are deposited in the appropriate fund in the State Treasury.
2. Unaccumulated discount on investments sold before maturity. 
3. Cost of investment in debt securities matured or sold. 
4. Face value of the investment in debt securities matured or sold. 
5. Unamortized premium on investments sold before maturity. 
6. Cost of common stocks sold. 
7. Cost of preferred stocks sold. 
8. (1) Amount of accrued interest sold plus or minus the difference between the amount received and the book value plus accrued interest sold, or (2) gain or loss on the sale of stocks. This net entry would result in a debit to the general ledger Revenue account if the result of the sale was a loss greater than the amount of accrued interest sold or a loss on the sale of stocks.