In my business, I have a business checking account and a brokerage account which I use for savings and investments. I am not sure how to account for the business investments.
Example 1: I move excess cash from the checking account to the brokerage account so I can invest the funds in a money market mutual fund. I have been accounting for these things as transfers. Transfer from checking to brokerage, transfer from brokerage to money market fund. When the money market fund pays dividends, I've been recording that as interest earned and when it is reinvested I transfer back to the money market fund. This all strikes me as reasonable, if not the exact right way to do this. Please let me know if there is a more accurate way to do this.
Example 2: I got the bright idea to capture some yield by buying a T-Bill in the business brokerage account. The T-Bill matures in time to fund taxes and bonuses, and I end up with > 4% yield. Problem is I don't know how to account for this transaction.
