Arthur Brothers Construction Ltd.

  • Reference: IVEY-9B12B022-E

  • Year: 2012

  • Number of pages: 3

  • Geographic Setting: Canada

  • Publication Date: Aug 17, 2012

  • Fecha de edición: Aug 17, 2012

  • Source: Ivey Business School (Canada)

  • Type of Document: Case

  • Industry Setting: Construction;

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Description

A general contracting company specializing in the construction of single-family homes was known for its exceptional craftsmanship and was, therefore, highly sought after during the busy construction season from late spring to early fall. As a result, clients secured a spot in the company's schedule by paying deposits. This left the company with excess cash during the off-season, which it invested each year in trading investments. The case centres on the transactions associated with these short-term trading investments.

Learning Objective

The case provides an introduction to accounting for both stock-trading investments (purchase, sale, dividends, stock splits, and market valuations) and bond-trading investments (purchase and sale with accrued interest, interest payments, and market valuations using present value tables).

Keywords

accounting principles Accounting Transactions canada Investments