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Investment transaction examples

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Learn how to record various types of investment transactions through the examples below involving equity securities (stocks, mutual funds, ETFs, etc), debt instrument securities (bonds and CDs) and derivative securities (stock options).

Investment

Equity security transaction examples:

Use the examples to learn how to record various transactions involving equity securities such as stocks, mutual funds, ETFs and other general securities.


Example:

You purchased 10 shares of ABC Inc. stock, ticker symbol "ABC", at 50.00 per share with a commission of 9.99 for a total of -509.99.

Steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Buy" for the transaction type.
  3. Select "ABC - ABC Inc." for the security if it exists. Otherwise enter "ABC Inc." and create the security when prompted.
  4. Set 10 for the units.
  5. Set 50.00 for the price per share.
  6. Set 9.99 for the commission.
  7. The amount should be automatically calculated to be -509.99. If not, enter 509.99 in the "Decrease" amount field or enter -509.99 with the minus sign in the "Amount" field as you are spending cash to acquire the shares.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Note Note: The account's cash balance will decrease while the value of account's holdings will increase by the market value of the newly acquired shares of the security. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the security and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash for the purchase was transferred from another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase removed from the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You sell 10 shares of XYZ Corp. stock, ticker symbol "XYZ", at 25.00 per share with a commission of 9.99 for a total of 240.01.

Steps:

  1. Create a new transaction in the appropriate account with the date of the sale.
  2. Set "Sell" for the transaction type.
  3. Select "XYZ - XYZ Corp." for the security if it exists. Otherwise enter "XYZ Corp." and create the security when prompted.
  4. Set 10 for the units.
  5. Set 25.00 for the price per share.
  6. Set 9.99 for the commission.
  7. The amount should be automatically calculated to be 240.01. If not, enter 240.01 in the "Increase" amount field or enter 240.01 in the "Amount" field as you are receiving cash for selling the shares.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Note Note: The account's cash balance will increase while the value of account's holdings will decrease by the market value of the shares sold of the security. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the security and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received in the sale was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You receive a 100.00 cash dividend on your shares ABC Inc. stock, ticker symbol "ABC".

Steps:

  1. Create a new transaction in the appropriate account with the date of when the cash dividend was issued.
  2. Set "Dividend" for the transaction type.
  3. Set "ABC - ABC Inc." for the security.
  4. Enter 100.00 in the "Increase" amount field or 100.00 in the "Amount" field.
  5. Set the other details for the transaction, such as the category or memo, as desired.
  6. Save the transaction.

Note Note: The account's cash balance will increase by the amount of the cash dividend.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received for the dividend was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You receive a dividend worth 100.00 on your shares ABC Inc. stock, ticker symbol "ABC", that is reinvested for 2 shares at 50.00 per share.

Steps:

  1. Create a new transaction in the appropriate account with the date of when the reinvested dividend was issued.
  2. Set "Reinvest Dividend" for the transaction type.
  3. Set "ABC - ABC Inc." for the security.
  4. Set 2 for the units.
  5. Set 50.00 for the price per share.
  6. The amount should be automatically calculated to be 100.00. If not, enter 100.00 in the "Increase" amount field or enter 100.00 in the "Amount" field.
  7. Set the other details for the transaction, such as the category or memo, as desired.
  8. Save the transaction.

Note Note: Although shown as a positive "Increase" amount in the account, a reinvestment has no effect on the account's cash balance as it is essentially the same as receiving cash and immediately using that cash to buy more shares. The account's cash balance not change while the value of account's holdings will increase by the market value of the additional shares from the reinvestment in the security. The account's total value (cash balance plus the market value of holdings) will increase by the market value of of the additional shares from the reinvestment in the security.

Example:

You closed an account at your old brokerage, "Traders R Us", and opened an account at a new brokerage "Trade Online". You had 100 shares of XYZ Corp. stock, ticker symbol "XYZ", at a cost basis of 25.00 per share in your old account and transferred it to your new account. This will require two transactions: a "Shares Out" transaction in your old account and a "Shares In" transaction in your new account.

Shares out transaction steps:

  1. Create a new transaction in the old account with the date of when the account was closed.
  2. Set "Shares Out" for the transaction type.
  3. Set "XYZ - XYZ Corp." for the security.
  4. Set 100 for the units.
  5. Set 25.00 for the price per share (the cost basis per share).
  6. Set the other details for the transaction, such as adding a memo about closing the account, as desired.
  7. The amount should be automatically calculated to be 2,500.00. If not, enter 2,500.00 in the "Increase" amount field or enter 2,500.00 in the "Amount" field as this is the cost basis of the shares. This will not affect the account's cash balance, only the cost basis of the holding.
  8. Save the transaction.

Shares in transaction steps:

  1. Create a new transaction in the new account with the date of when the account was opened.
  2. Set "Shares In" for the transaction type.
  3. Set "XYZ - XYZ Corp." for the security.
  4. Set 100 for the units.
  5. Set 25.00 for the price per share (the cost basis per share).
  6. Set the other details for the transaction, such as adding a memo about the transfer to a new account, as desired.
  7. The amount should be automatically calculated to be -2,500.00. If not, enter 2,500.00 in the "Decrease" amount field or enter -2,500.00 with the minus sign in the "Amount" field as this is the cost basis of the shares. This will not affect the account's cash balance, only the cost basis of the holding.
  8. Save the transaction.

Note Note: The set transaction amount for "Shares In" and "Shares Out" transactions do not affect the account's cash balance unless there is a commission involved in moving the shares. However, the set transaction amount is used for tracking the cost basis of the holding.

Example:

For some unknown reason your holding of XYZ Corp. stock, ticker symbol "XYZ", is off and you just can't find the transaction(s) you are missing in your records. You know your holding on XYZ Corp. stock is 100 shares with a cost basis of 2,500.00, but you show only 90 shares in the program with a cost basis of 2,250.00. Based on this information you determine you need to adjust your holding and add 10 shares with a cost basis of 250.00.

Steps:

  1. Create a new transaction in the appropriate account with the date of when you want the adjustment to occur.
  2. Set "Shares In" for the transaction type.
  3. Set "XYZ - XYZ Corp." for the security.
  4. Set 10 for the units.
  5. Set 25.00 for the price per share (the cost basis per share).
  6. Set the other details for the transaction, such as adding a memo about why the adjustment was made, as desired.
  7. The amount should be automatically calculated to be -250.00. If not, enter 250.00 in the "Decrease" amount field or enter -250.00 with the minus sign in the "Amount" field as this is the cost basis of the shares. This will not affect the account's cash balance, only the cost basis of the holding.
  8. Save the transaction.

Note Note: The set transaction amount for "Shares In" and "Shares Out" transactions do not affect the account's cash balance unless there is a commission involved in moving the shares. However, the set transaction amount is used for tracking the cost basis of the holding.

Example:

There was a 2 for 1 stock split on ABC Inc. stock, ticker symbol "ABC".

Steps:

  1. Create a new transaction in the appropriate account with the date of when the stock split occurred.
  2. Set "Investment Split" for the transaction type.
  3. Set "ABC - ABC Inc." for the security.
  4. Set "2 for 1" for the split ratio in the units field.
  5. Set the other details for the transaction, such as adding a memo about the stock split, as desired.
  6. Save the transaction.

Note Note: The split ratio is from your perspective. For example, a "4 for 1" ratio would mean you received 4 shares for every 1 share you held prior to the stock split. A "1 for 2" split ratio, a reverse split, would mean you now have 1 share for every 2 shares you held before the reverse split.

Note Note: For some stock splits you may receive cash in lieu of fractional shares. To record cash in lieu of fractional shares, record a "Sell" transaction on the fractional shares using the amount received divided by the number of fraction shares as the price per share for the transaction.

You will need to determine if the spinoff was taxable or non-taxable. You will also need to know the ratio of shares received in the new security and the ratio of how your original cost basis in spread across the two securities.

Taxable example:

On 1/1/2010 you bought 100 shares of ABC Inc. stock, ticker symbol "ABC", at 25.00 per share. On 1/1/2018, there is a spinoff of D Inc. from ABC Inc. and 75% of your cost basis is retained in ABC Inc. while 25% is now in D Inc. You receive 1 share of D Inc. for every two shares of ABC Inc. you hold. This will require two transactions: a "Return of Capital" transaction for 25% of your cost basis in ABC Inc. stock and a "Buy" transaction for the shares of D Inc. you receive. You holding period for the investment in D Inc. begins at the time of the spinoff.

Return of capital transaction steps:

  1. Create a new transaction in the appropriate account with the date of the spinoff, 1/1/2018.
  2. Set "Return of Capital" for the transaction type.
  3. Set "ABC - ABC Inc." for the security.
  4. Enter 625.00, 25% of your original cost basis of ABC Inc. stock (2,500.00*.25 = 625.00), in the "Increase" amount field or enter 625.00 in the "Amount" field. This will increase the account's cash balance temporarily to fund the acquisition of the D Inc. shares in the next transaction.
  5. Set the other details for the transaction, such as adding a memo about the spinoff, as desired.
  6. Save the transaction.

Buy transaction steps:

  1. Create a new transaction in the appropriate account with the date of the spinoff, 1/1/2018.
  2. Set "Buy" for the transaction type.
  3. Select "D - D Inc." for the security if it exists. Otherwise enter "D Inc." and accept to create the security when prompted.
  4. Set 50 for the units since you receive 1 share of every 2 shares of ABC Inc. stock held.
  5. Set 12.50 for the price per share. That is 25% of your original cost basis of ABC Inc. stock (2,500.00*.25 = 625.00) divided by the number of shares in D Inc. you now hold (625.00/50 = 12.50).
  6. The amount should be automatically calculated to be -625.00. If not, enter 625.00 in the "Decrease" amount field or enter -625.00 with the minus sign in the "Amount" field. This will reduce the account's cash balance.
  7. Set the other details for the transaction, such as adding a memo about the spinoff, as desired.
  8. Save the transaction.

Note Note: For some spinoffs you may receive cash in lieu of fractional shares. To record cash in lieu of fractional shares, record a "Sell" transaction on the fractional shares using the amount received divided by the number of fraction shares as the price per share for the transaction.

Non-Taxable example:

On 1/1/2010 On 1/1/2010 you bought 50 shares of ABC Inc. stock, ticker symbol "ABC", at 25.00 per share. On 1/1/2012 you bought 50 more shares of ABC Inc. stock at 30.00 per share. On 1/1/2018, there is a spinoff of D Inc. from ABC Inc. and 85% of your cost basis is retained in ABC Inc. while 15% is now in D Inc. You receive 1 share of D Inc. for every two shares of ABC Inc. you hold. The holding period for the new investment in D Inc. has to match your original holding period of each lot of ABC Inc. stock acquired. That will require a pair of transactions for each lot acquired of ABC Inc.: a "Return of Capital" transaction for 15% of your cost basis in ABC Inc. stock and a "Buy" transaction for the shares of D Inc. you receive. Resulting in four transactions total in this example.

Return of capital transaction for 1/1/2010 lot steps:

  1. Create a new transaction in the appropriate account with the date of the first lot acquired of ABC Inc., 1/1/2010.
  2. Set "Return of Capital" for the transaction type.
  3. Set "ABC - ABC Inc." for the security.
  4. Enter 187.50, 15% of your original cost basis of ABC Inc. stock acquired on 1/1/2010 (1,250.00*.15 = 187.50), in the "Increase" amount field or enter 187.50 in the "Amount" field. This will increase the account's cash balance temporarily to fund the acquisition of the D Inc. shares in the next transaction.
  5. Set the other details for the transaction, such as adding a memo about the spinoff, as desired.
  6. Save the transaction.

Buy transaction for 1/1/2010 lot steps:

  1. Create a new transaction in the appropriate account with the date of the first lot acquired of ABC Inc., 1/1/2010.
  2. Set "Buy" for the transaction type.
  3. Select "D - D Inc." for the security if it exists. Otherwise enter "D Inc." and accept to create the security when prompted.
  4. Set 25 for the units since you receive 1 share of every 2 shares of ABC Inc. stock held.
  5. Set 7.50 for the price per share. That is 15% of your original cost basis of ABC Inc. stock acquired on 1/1/2010 (1,250.00*.15 = 187.50) divided by the number of shares in D Inc. you now hold (187.50/25 = 7.50).
  6. The amount should be automatically calculated to be -187.50. If not, enter 187.50 in the "Decrease" amount field or enter -187.50 with the minus sign in the "Amount" field. This will reduce the account's cash balance.
  7. Set the other details for the transaction, such as adding a memo about the spinoff, as desired.
  8. Save the transaction.

Return of capital transaction for 1/1/2012 lot steps:

  1. Create a new transaction in the appropriate account with the date of the second lot acquired of ABC Inc., 1/1/2012.
  2. Set "Return of Capital" for the transaction type.
  3. Set "ABC - ABC Inc." for the security.
  4. Enter 225.00, 15% of your original cost basis of ABC Inc. stock acquired on 1/1/2012 (1,500.00*.15 = 225.00), in the "Increase" amount field or enter 225.00 in the "Amount" field. This will increase the account's cash balance temporarily to fund the acquisition of the D Inc. shares in the next transaction.
  5. Set the other details for the transaction, such as adding a memo about the spinoff, as desired.
  6. Save the transaction.

Buy transaction for 1/1/2012 lot steps:

  1. Create a new transaction in the appropriate account with the date of the second lot acquired of ABC Inc., 1/1/2012.
  2. Set "Buy" for the transaction type.
  3. Select "D - D Inc." for the security if it exists. Otherwise enter "D Inc." and accept to create the security when prompted.
  4. Set 25 for the units since you receive 1 share of every 2 shares of ABC Inc. stock held.
  5. Set 9.00 for the price per share. That is 15% of your original cost basis of ABC Inc. stock acquired on 1/1/2012 (1,500.00*.15 = 225.00) divided by the number of shares in D Inc. you now hold (225.00/25 = 9.00).
  6. The amount should be automatically calculated to be -225.00. If not, enter 225.00 in the "Decrease" amount field or enter -225.00 with the minus sign in the "Amount" field. This will reduce the account's cash balance.
  7. Set the other details for the transaction, such as adding a memo about the spinoff, as desired.
  8. Save the transaction.

Note Note: For some spinoffs you may receive cash in lieu of fractional shares. To record cash in lieu of fractional shares, record a "Sell" transaction on the fractional shares using the amount received divided by the number of fraction shares as the price per share for the transaction.

Example:

On 1/1/2010 you bought 50 shares of ABC Inc. stock, ticker symbol "ABC", at 25.00 per share. On 1/1/2012 you bought 50 more shares of ABC Inc. stock at 30.00 per share. On 1/1/2018, ABC Inc. merges with XYZ Corp., ticker symbol "XYZ", and creates a new company EFG Inc., ticker symbol EFG. You receive 1 share of EFG Inc. for every two shares of ABC Inc. you hold. This will require two transactions: a "Shares Out" transaction for the shares of ABC Inc. and a "Shares In" transaction for the shares of EFG Inc. you receive.

Shares out transaction steps:

  1. Create a new transaction in the appropriate account with the date of the merger, 1/1/2018.
  2. Set "Shares Out" for the transaction type.
  3. Set "ABC - ABC Inc." for the security.
  4. Set 100 for the units.
  5. Set 27.50 for the price per share, your cost basis per share.
  6. The amount should be automatically calculated to be 2,750.00. If not, enter 2,750.00, your original cost basis of ABC Inc. stock, in the "Increase" amount field or enter 2,750.00 in the "Amount" field. This will not affect the account's cash balance, only the cost basis of the holding.
  7. Set the other details for the transaction, such as adding a memo about the merger, as desired.
  8. Save the transaction.

Shares in transaction steps:

  1. Create a new transaction in the appropriate account with the date of the merger, 1/1/2018.
  2. Set "Shares In" for the transaction type.
  3. Select "EFG - EFG Inc." for the security if it exists. Otherwise enter "EFG Inc." and accept to create the security when prompted.
  4. Set 50 for the units since you receive 1 share of every 2 shares of ABC Inc. stock held.
  5. Set 55.00 for the price per share, your original cost basis of ABC Inc. stock divided by the number of shares in EFG Inc. you now hold (2,750.00/50 = 55.00).
  6. The amount should be automatically calculated to be -2,750.00. If not, enter 2,750.00 in the "Decrease" amount field or enter -2,750.00 with the minus sign in the "Amount" field. This will not affect the account's cash balance, only the cost basis of the holding.
  7. Set the other details for the transaction, such as adding a memo about the merger, as desired.
  8. Save the transaction.

Note Note: In the above example, the holding period is not accounted for. To account for the holding period, you could record a corresponding "Shares In" transaction for EFG Inc. for each lot acquired of ABC Inc. However, doing so will result in inaccurate historical report values. Which option you should choose would depend on if you expect the holding period to be an issue (do you expect to sell EFG Inc. shares in the short term, then record corresponding "Shares In" transactions for the original lots).

Note Note: For some mergers and acquisitions you may receive cash in lieu of fractional shares. To record cash in lieu of fractional shares, record a "Sell" transaction on the fractional shares using the amount received divided by the number of fraction shares as the price per share for the transaction.

Investment

Debt instrument security transaction examples:

Use the examples to learn how to record various transactions involving debt instruments such as bonds and CDs.


Example:

You purchased 2 ABC Inc. bonds with a par value of 10,000.00, that mature in January 2022, at 9,500.00 each with a commission of 9.99 for a total of -19,009.99.

Steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Buy" for the transaction type.
  3. Select the security for this bond if one already exists. Otherwise enter the desired name for the bond, such as "ABC Inc. Bond January 2022", and accept to create the security when prompted.
  4. Set 200 for the units (using percentage of par values).
  5. Set 95.00 for the unit price (percentage of par value).
  6. Set 9.99 for the commission.
  7. The amount should be automatically calculated to be -19,009.99. If not, enter 19,009.99 in the "Decrease" amount field or enter -19,009.99 with the minus sign in the "Amount" field as you are spending cash to acquire the bonds.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Note Note: Use percentage of par values for the units and unit price when entering bonds.

Note Note: The account's cash balance will decrease while the value of account's holdings will increase by the market value of the newly acquired bonds. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the security and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash for the purchase was transferred from another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase removed from the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You sell 2 ABC Inc. bonds with a par value of 10,000.00, before their maturity of January 2022, at 9,750.00 each with a commission of 9.99 for a total of 19,490.01.

Steps:

  1. Create a new transaction in the appropriate account with the date of the sale.
  2. Set "Sell" for the transaction type.
  3. Select the security for this bond, such as "ABC Inc. Bond January 2022".
  4. Set 200 for the units (using percentage of par values).
  5. Set 97.50 for the unit price (percentage of par value).
  6. Set 9.99 for the commission.
  7. The amount should be automatically calculated to be 19,490.01. If not, enter 19,490.01 in the "Increase" amount field or enter 19,490.01 in the "Amount" field as you are receiving cash for selling the bonds.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Note Note: Use percentage of par values for the units and unit price when entering bonds.

Note Note: The account's cash balance will increase while the value of account's holdings will decrease by the market value of the bonds sold. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the security and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received in the sale was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You have 2 ABC Inc. bonds with a par value of 10,000.00 that reached their maturity in January 2022 for a total of 20,000.00.

Steps:

  1. Create a new transaction in the appropriate account with the date of the redemption.
  2. Set "Sell" for the transaction type.
  3. Select the security for this bond, such as "ABC Inc. Bond January 2022".
  4. Set 200 for the units (using percentage of par values).
  5. Set 100.00 for the unit price (percentage of par value).
  6. The amount should be automatically calculated to be 20,000.00. If not, enter 20,000.00 in the "Increase" amount field or enter 20,000.00 in the "Amount" field as you are receiving cash for the maturing bonds.
  7. Set the other details for the transaction, such as the category or memo, as desired.
  8. Save the transaction.

Note Note: Use percentage of par values for the units and unit price when entering bonds.

Note Note: The account's cash balance will increase while the value of account's holdings will decrease by the market value of the matured bonds. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the security and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received in the sale was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You receive 500.00 interest on your 2 ABC Inc. bonds that mature in January 2022.

Steps:

  1. Create a new transaction in the appropriate account and set its date.
  2. Set "Investment Interest" for the transaction type.
  3. Select the security for this bond, such as "ABC Inc. Bond January 2022".
  4. Enter 500.00 in the "Increase" amount field or enter 500.00 in the "Amount" field as you are receiving cash.
  5. Set the other details for the transaction, such as the "Interest Income" category or memo, as desired.
  6. Save the transaction.

Note Note: The account's cash balance will increase by the amount of the interest.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received in the transaction was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You paid 250.00 accrued interest to the seller when you purchased 2 ABC Inc. bonds that mature in January 2022.

Steps:

  1. Create a new transaction in the appropriate account and set its date.
  2. Set "Investment Interest" for the transaction type.
  3. Select the security for this bond, such as "ABC Inc. Bond January 2022".
  4. Enter -250.00 in the "Decrease" amount field or enter -250.00 in the "Amount" field as you are spending cash.
  5. Set the other details for the transaction, such as the "Interest Income" category or memo, as desired.
  6. Save the transaction.

Note Note: The account's cash balance will decrease by the amount of the accrued interest paid to the seller of the bond.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received in the transaction was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You purchased 2 10,000.00 CDs from Central Bank that mature in January 2022 for a total of -20,000.00.

Steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Buy" for the transaction type.
  3. Select the security for this CD if one already exists. Otherwise enter the desired name for the CD, such as "2022 Central Bank CD", and accept to create the security when prompted.
  4. Set 20,000 for the units (face value).
  5. Set 1.00 for the unit price (pegged at 1.00 per unit).
  6. The amount should be automatically calculated to be -20,000.00. If not, enter 20,000.00 in the "Decrease" amount field or enter -20,000.00 with the minus sign in the "Amount" field as you are spending cash to acquire the CDs.
  7. Set the other details for the transaction, such as the category or memo, as desired.
  8. Save the transaction.

Note Note: Use 1.00 for the unit price and face value for the number of units when entering CDs.

Note Note: The account's cash balance will decrease while the value of account's holdings will increase by the market value of the newly acquired CDs. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the security and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash for the purchase was transferred from another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase removed from the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You have 2 10,000.00 CDs from Central Bank that reached their maturity in January 2022 for a total of 20,000.00.

Steps:

  1. Create a new transaction in the appropriate account with the date of the redemption.
  2. Set "Sell" for the transaction type.
  3. Select the security for this CD such as "2022 Central Bank CD".
  4. Set 20,000 for the units (face value).
  5. Set 1.00 for the unit price (pegged at 1.00 per unit).
  6. The amount should be automatically calculated to be 20,000.00. If not, enter 20,000.00 in the "Increase" amount field or enter 20,000.00 in the "Amount" field as you are receiving cash for the maturing CDs.
  7. Set the other details for the transaction, such as the category or memo, as desired.
  8. Save the transaction.

Note Note: Use 1.00 for the unit price and face value for the number of units when entering CDs.

Note Note: The account's cash balance will increase while the value of account's holdings will decrease by the market value of the matured CDs. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the security and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received in the sale was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You cash in 2 10,000.00 CDs from Central Bank before their maturity in January 2022 for a total of 20,000.00.

Steps:

  1. Create a new transaction in the appropriate account with the date of the redemption.
  2. Set "Sell" for the transaction type.
  3. Select the security for this CD such as "2022 Central Bank CD".
  4. Set 20,000 for the units (face value).
  5. Set 1.00 for the unit price (pegged at 1.00 per unit).
  6. The amount should be automatically calculated to be 20,000.00. If not, enter 20,000.00 in the "Increase" amount field or enter 20,000.00 in the "Amount" field as you are receiving cash for the maturing CDs.
  7. Set the other details for the transaction, such as the category or memo, as desired.
  8. Save the transaction.

Note Note: Use 1.00 for the unit price and face value for the number of units when entering CDs.

Note Note: Early withdrawal or sale of a CD may require a penalty which you can record as a "Misc Inv. Expense" and categorize and add a memo regarding the penalty for use later during tax preparation.

Note Note: The account's cash balance will increase while the value of account's holdings will decrease by the market value of the cashed in CDs. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the security and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received in the sale was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

200.00 of interest accrues on your 2 10,000.00 CDs from Central Bank that mature in January 2022.

Steps:

  1. Create a new transaction in the appropriate account and set its date.
  2. Set "Reinvest Income" for the transaction type.
  3. Select the security for this bond, such as "ABC Inc. Bond January 2022".
  4. Set 200 for the units (face value).
  5. Set 1.00 for the unit price (pegged at 1.00 per unit).
  6. The amount should be automatically calculated to be 200.00. If not, enter 200.00 in the "Increase" amount field or enter 200.00 in the "Amount" field as you are receiving cash for the maturing CDs.
  7. Enter 200.00 in the "Increase" amount field or enter 200.00 in the "Amount" field.
  8. Set the other details for the transaction, such as the "Interest Income" category or memo, as desired.
  9. Save the transaction.

Note Note: Although shown as a positive "Increase" amount in the account, a reinvestment has no effect on the account's cash balance as it is essentially the same as receiving cash and immediately using that cash to buy more units. The account's cash balance not change while the value of account's holdings will increase by the market value of the additional units from the reinvestment in the security. The account's total value (cash balance plus the market value of holdings) will increase by the market value of of the additional units from the reinvestment in the security.

Example:

You purchased 2 ABC Inc. notes with a par value of 1,000.00, that mature in January 2022, at 950.00 each with a commission of 9.99 for a total of -1,909.99.

Steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Buy" for the transaction type.
  3. Select the security for this note if one already exists. Otherwise enter the desired name for the note, such as "ABC Inc. Note January 2022", and accept to create the security when prompted.
  4. Set 20 for the units (using percentage of par values).
  5. Set 95.00 for the unit price (percentage of par value).
  6. Set 9.99 for the commission.
  7. The amount should be automatically calculated to be -1,909.99. If not, enter 1,909.99 in the "Decrease" amount field or enter -1,909.99 with the minus sign in the "Amount" field as you are spending cash to acquire the notes.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Note Note: Use 1.00 for the unit price and face value for the number of units when entering CDs. Use percentage of par values for the units and unit price when entering bonds and other debt instruments.

Note Note: The account's cash balance will decrease while the value of account's holdings will increase by the market value of the newly acquired notes. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the security and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash for the purchase was transferred from another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase removed from the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You sell 2 ABC Inc. notes with a par value of 1,000.00, before their maturity of January 2022, at 975.00 each with a commission of 9.99 for a total of 1,940.01.

Steps:

  1. Create a new transaction in the appropriate account with the date of the sale.
  2. Set "Sell" for the transaction type.
  3. Select the security for this note such as "ABC Inc. Note January 2022".
  4. Set 20 for the units (using percentage of par values).
  5. Set 97.50 for the unit price (percentage of par value).
  6. Set 9.99 for the commission.
  7. The amount should be automatically calculated to be 1,940.01. If not, enter 1,940.01 in the "Increase" amount field or enter 1,940.01 in the "Amount" field as you are receiving cash for selling the notes.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Note Note: Use 1.00 for the unit price and face value for the number of units when entering CDs. Use percentage of par values for the units and unit price when entering bonds and other debt instruments.

Note Note: The account's cash balance will increase while the value of account's holdings will decrease by the market value of the notes sold. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the security and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received in the sale was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You have 2 ABC Inc. notes with a par value of 1,000.00 that reached their maturity in January 2022 for a total of 2,000.00.

Steps:

  1. Create a new transaction in the appropriate account with the date of the redemption.
  2. Set "Sell" for the transaction type.
  3. Select the security for this note such as "ABC Inc. Note January 2022".
  4. Set 20 for the units (using percentage of par values).
  5. Set 100.00 for the unit price (percentage of par value).
  6. The amount should be automatically calculated to be 2,000.00. If not, enter 2,000.00 in the "Increase" amount field or enter 2,000.00 in the "Amount" field as you are receiving cash for the maturing notes.
  7. Set the other details for the transaction, such as the category or memo, as desired.
  8. Save the transaction.

Note Note: Use 1.00 for the unit price and face value for the number of units when entering CDs. Use percentage of par values for the units and unit price when entering bonds and other debt instruments.

Note Note: The account's cash balance will increase while the value of account's holdings will decrease by the market value of the matured notes. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the security and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received in the sale was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You receive 50.00 interest on your 2 ABC Inc. notes that mature in January 2022.

Steps:

  1. Create a new transaction in the appropriate account and set its date.
  2. Set "Investment Interest" for the transaction type.
  3. Select the security for this note such as "ABC Inc. Note January 2022".
  4. Enter 50.00 in the "Increase" amount field or enter 50.00 in the "Amount" field as you are receiving cash.
  5. Set the other details for the transaction, such as the "Interest Income" category or memo, as desired.
  6. Save the transaction.

Note Note: The account's cash balance will increase by the amount of the interest.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received in the transaction was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You paid 25.00 accrued interest to the seller when you purchased 2 ABC Inc. notes that mature in January 2022.

Steps:

  1. Create a new transaction in the appropriate account and set its date.
  2. Set "Investment Interest" for the transaction type.
  3. Select the security for this note such as "ABC Inc. Note January 2022".
  4. Enter -25.00 in the "Decrease" amount field or enter -25.00 in the "Amount" field as you are spending cash.
  5. Set the other details for the transaction, such as the "Interest Income" category or memo, as desired.
  6. Save the transaction.

Note Note: The account's cash balance will decrease by the amount of the accrued interest paid to the seller of the bond.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash received in the transaction was transferred to another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase added to the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You closed an account at your old brokerage, "Traders R Us", and opened an account at a new brokerage "Trade Online". You had 2 ABC. Inc. bonds with a par value of 10,000.00, that mature in January 2022, at a cost basis of 19,000.00 in your old account and transferred it to your new account. This will require two transactions: a "Shares Out" transaction in your old account and a "Shares In" transaction in your new account.

Shares out transaction steps:

  1. Create a new transaction in the old account with the date of when the account was closed.
  2. Set "Shares Out" for the transaction type.
  3. Select the security for this bond, such as "ABC Inc. Bond January 2022".
  4. Set 200 for the units (using percentage of par values).
  5. Set 95.00 for the unit price (cost basis as a percentage of par value).
  6. Set the other details for the transaction, such as adding a memo about closing the account, as desired.
  7. The amount should be automatically calculated to be -19,000.00. If not, enter 19,000.00 in the "Increase" amount field or enter 19,000.00 in the "Amount" field as this is the cost basis of the bonds. This will not affect the account's cash balance, only the cost basis of the holding.
  8. Save the transaction.

Shares in transaction steps:

  1. Create a new transaction in the new account with the date of when the account was opened.
  2. Set "Shares In" for the transaction type.
  3. Select the security for this bond, such as "ABC Inc. Bond January 2022".
  4. Set 200 for the units (using percentage of par values).
  5. Set 95.00 for the unit price (cost basis as a percentage of par value).
  6. Set the other details for the transaction, such as adding a memo about the transfer to a new account, as desired.
  7. The amount should be automatically calculated to be -19,000.00. If not, enter 19,000.00 in the "Decrease" amount field or enter -19,000.00 in the "Amount" field with the minus sign as this is the cost basis of the bonds. This will not affect the account's cash balance, only the cost basis of the holding.
  8. Save the transaction.

Note Note: Use 1.00 for the unit price and face value for the number of units when entering CDs. Use percentage of par values for the units and unit price when entering bonds and other debt instruments.

Note Note: The set transaction amount for "Shares In" and "Shares Out" transactions do not affect the account's cash balance unless there is a commission involved in moving the units. However, the set transaction amount is used for tracking the cost basis of the holding.

Example:

For some unknown reason your holding of ABC. Inc. bonds is off and you just can't find the transaction(s) you are missing in your records. You know your holding on ABC. Inc. bonds is 2 bonds with a cost basis of 19,00.00, but you show only 1 bond in the program with a cost basis of 9,500.00. Based on this information you determine you need to adjust your holding and add 1 bond with a cost basis of 9,500.00.

Steps:

  1. Create a new transaction in the appropriate account with the date of when you want the adjustment to occur.
  2. Set "Shares In" for the transaction type.
  3. Select the security for this bond, such as "ABC Inc. Bond January 2022".
  4. Set 100 for the units (using percentage of par values).
  5. Set 95.00 for the unit price (cost basis as a percentage of par value).
  6. Set the other details for the transaction, such as adding a memo about why the adjustment was made, as desired.
  7. The amount should be automatically calculated to be -9,500.00. If not, enter 9,500.00 in the "Decrease" amount field or enter -9,500.00 in the "Amount" field with the minus sign as this is the cost basis of the bonds. This will not affect the account's cash balance, only the cost basis of the holding.
  8. Save the transaction.

Note Note: Use 1.00 for the unit price and face value for the number of units when entering CDs. Use percentage of par values for the units and unit price when entering bonds and other debt instruments.

Note Note: The set transaction amount for "Shares In" and "Shares Out" transactions do not affect the account's cash balance unless there is a commission involved in moving the units. However, the set transaction amount is used for tracking the cost basis of the holding.

Investment

Derivative security transaction examples:

Use the examples to learn how to record various transactions involving derivatives such as stock options.


Example:

You purchased a 5 contracts for a 2022 January 21 call option on ABC Inc. stock, ticker symbol ABC, with a strike price of 50.00, at 5.00 each with a commission of 9.99 for a total of -2,509.99.

Steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Buy" for the transaction type. You could also use "Buy to Open" if you're opening a long position or "Buy to Close" if you're closing a short position.
  3. Select the security for this option if one already exists. Otherwise enter the desired name or symbol for the option, such as "ABC Inc. Option January 2022" or "ABC220121C00050000", and accept to create the security when prompted.
  4. Set 5 for the units.
  5. Set 5.00 for the unit price.
  6. Set 9.99 for the commission.
  7. The amount should be automatically calculated to be -2,509.99. If not, enter 2,509.99 in the "Decrease" amount field or enter -2,509.99 with the minus sign in the "Amount" field as you are spending cash to acquire the options.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Note Note: Use the number of contracts and not the number of units of the underlying security for derivatives. Market prices shown for options will be calculated as: number of contracts x shares/contract x contract price. You can specify the shares/contract for a derivative if it varies from the default of 100 shares/contract.

Note Note: The account's cash balance will decrease while the value of account's holdings will increase by the market value of the newly acquired options. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the option and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash for the purchase was transferred from another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase removed from the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You sold 5 contracts for a 2022 January 21 put option on XYZ Corp. stock, ticker symbol XYZ, with a strike price of 25.00, at 5.00 each with a commission of 9.99 for a total of 1,240.01.

Steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Sell" for the transaction type. You could also use "Sell to Close" if you're closing a long position or "Sell to Open" if you're opening a short position.
  3. Select the security for this option if one already exists. Otherwise enter the desired name or symbol for the option, such as "XYZ Corp. Option January 2022" or "XYX220121C00025000", and accept to create the security when prompted.
  4. Set 5 for the units.
  5. Set 2.50 for the unit price.
  6. Set 9.99 for the commission.
  7. The amount should be automatically calculated to be 1,240.01. If not, enter 1,240.01 in the "Increase" amount field or enter 1,240.01 in the "Amount" field as you are receiving cash for selling the options.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Note Note: Use the number of contracts and not the number of units of the underlying security for derivatives. Market prices shown for options will be calculated as: number of contracts x shares/contract x contract price. You can specify the shares/contract for a derivative if it varies from the default of 100 shares/contract.

Note Note: The account's cash balance will increase while the value of account's holdings will decrease by the market value of the sold options. The two changes will offset each other in the account's total value (cash balance plus the market value of holdings). Whether or not they completely offset one another depends on the current market price of the option and if any commission was involved.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash for the purchase was transferred from another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase removed from the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example #1:

You are long 5 contracts for a 2022 January 21 call option on ABC Inc. stock, ticker symbol ABC, with a strike price of 50.00, and they expire out of the money.

Steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Shares Out" for the transaction type.
  3. Select the security for this option, such as "ABC Inc. Option January 2022" or "ABC220121C00050000"
  4. Set 5 for the units.
  5. Set 0.00 for the unit price.
  6. The amount should be automatically calculated to be 0.00. If not, enter 0.00 in the "Increase" amount field or enter 0.00 in the "Amount" field as you are closing out a zero valued security (a complete loss).
  7. Set the other details for the transaction, such as the category or memo, as desired.
  8. Save the transaction.

Example #2:

You are short 5 contracts for a 2022 January 21 put option on XYZ Corp. stock, ticker symbol XYZ, with a strike price of 25.00, and they expire out of the money.

Steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Shares In" for the transaction type.
  3. Select the security for this option, such as "XYZ Corp. Option January 2022" or "XYZ220121C00025000"
  4. Set 5 for the units.
  5. Set 0.00 for the unit price.
  6. The amount should be automatically calculated to be 0.00. If not, enter 0.00 in the "Increase" amount field or enter 0.00 in the "Amount" field as you are closing out a zero valued security (a complete gain).
  7. Set the other details for the transaction, such as the category or memo, as desired.
  8. Save the transaction.

Note Note: Use the number of contracts and not the number of units of the underlying security for derivatives. Market prices shown for options will be calculated as: number of contracts x shares/contract x contract price. You can specify the shares/contract for a derivative if it varies from the default of 100 shares/contract.

Note Note: The set transaction amount for "Shares In" and "Shares Out" transactions do not affect the account's cash balance unless there is a commission involved in moving the contracts. However, the set transaction amount is used for tracking the cost basis of the holding.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash for the purchase was transferred from another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase removed from the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

When exercising a derivative you will need to close the position on the derivative contracts involved, buy or sell the underlying security, and apply the cost basis of the derivative contracts to the position on the underlying security. Applying the cost basis of the derivative contracts to the position on the underlying security can be done by manipulating the price per share and amount in the buy or sell transaction to reflect the cost basis of the derivative or by recording a separate "Misc. Inv. Expense" transaction. For the sake of keeping detailed records, the examples will use the extra transaction.

Example #1 - Exercising a call:

You are long 5 contracts for a 2022 January 21 call option on ABC Inc. stock, ticker symbol ABC, with a strike price of 50.00, that you originally paid 2,509.99 for, and you exercise them while ABC Inc. stock is at 75.00. This will require three transactions: a "Sell" transaction for the option, a "Buy" transaction for ABC Inc. stock, and a "Misc. Inv. Expense" transaction on ABC Inc. stock.

Option sell transaction steps:

  1. Create a new transaction in the appropriate account with the exercise date.
  2. Set "Sell" for the transaction type.
  3. Select the security for this option, such as "ABC Inc. Option January 2022" or "ABC220121C00050000"
  4. Set 5 for the units.
  5. Set 5.01998 for the unit price (the cost basis per contract). This will keep the option position from showing a gain or loss.
  6. The amount should be automatically calculated to be 2,509.99 (the total cost basis). If not, enter 2,509.99 in the "Increase" amount field or enter 2,509.99 in the "Amount" field as you are closing out the position without wanting to shown a gain/loss on the option itself. This will temporarily increase the account's cash balance.
  7. Set the other details for the transaction, such as adding a memo about exercising the option, as desired.
  8. Save the transaction.

Stock buy transaction steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Buy" for the transaction type.
  3. Select "ABC - ABC Inc." for the security if it exists. Otherwise enter "ABC Inc." and create the security when prompted.
  4. Set 10 for the units.
  5. Set 500 for the units.
  6. Set 50.00 for the price per share.
  7. The amount should be automatically calculated to be -25,000.00. If not, enter 25,000.00 in the "Decrease" amount field or enter -25,000.00 with the minus sign in the "Amount" field as you are spending cash to acquire the shares. This will reduce the account's cash balance.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Stock misc. investment expense transaction steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Misc. Inv. Expense" for the transaction type.
  3. Select "ABC - ABC Inc." for the security.
  4. Enter 2,509.99 in the "Decrease" amount field or enter -2,509.99 with the minus sign in the "Amount" field as you are applying the cash received from the option "Sell" transaction to the cost basis of the stock. This will reduce the account's cash balance and offset the increase from the option "Sell" transaction.
  5. Set the other details for the transaction, such as adding a memo about referring to being the cost basis of the option, as desired.
  6. Save the transaction.

Note Note: The account's cash balance will increase with the option sale transaction, then be decreased by the stock purchase, and then be decreased by recording the misc. investment expense transaction. The total change in cash balance will be the cost of the stock purchased. The value of account's holdings will decrease by the market value of the options exercised and it will increase by the market value of the newly acquired shares of the stock.

Example #2 - Exercising a put:

You are long 5 contracts for a 2022 January 21 put option on XYZ Corp. stock, ticker symbol XYZ, with a strike price of 25.00, that you originally paid 1,259.99 for, and you exercise them while XYZ Corp. stock is at 12.50. This will require three transactions: a "Sell" transaction for the option, a "Sell" transaction for Corp Inc. stock, and a "Misc. Inv. Expense" transaction on XYZ Corp. stock.


Note Note: If you already owned the stock before exercising the option then record the stock "Misc. Inv. Expense" transaction before recording the stock "Sell" transaction. If you didn't already own the stock before exercising the option then record the stock "Misc. Inv. Expense" transaction after recording the stock "Sell" transaction. The "Misc. Inv. Expense" needs to be between the "Buy" and "Sell" transactions.

Option sell transaction steps:

  1. Create a new transaction in the appropriate account with the exercise date.
  2. Set "Sell" for the transaction type.
  3. Select the security for this option, such as "XYZ Corp. Option January 2022" or "XYZ220121C00025000"
  4. Set 5 for the units.
  5. Set 2.48002 for the unit price (the cost basis per contract). This will keep the option position from showing a gain or loss.
  6. The amount should be automatically calculated to be 1,259.99 (the total cost basis). If not, enter 1,259.99 in the "Increase" amount field or enter 1,259.99 in the "Amount" field as you are closing out the position without wanting to shown a gain/loss on the option itself. This will temporarily increase the account's cash balance.
  7. Set the other details for the transaction, such as adding a memo about exercising the option, as desired.
  8. Save the transaction.

Stock sell transaction steps:

  1. Create a new transaction in the appropriate account with the date of the sale.
  2. Set "Sell" for the transaction type.
  3. Select "XYZ - XYZ Corp." for the security if it exists. Otherwise enter "XYZ Corp." and create the security when prompted.
  4. Set 10 for the units.
  5. Set 500 for the units.
  6. Set 25.00 for the price per share.
  7. The amount should be automatically calculated to be 12,500.00. If not, enter 12,500.00 in the "Increase" amount field or enter 12,500.00 in the "Amount" field as you are receiving cash for selling the shares. This will reduce the account's cash balance.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Stock misc. investment expense transaction steps:

  1. Create a new transaction in the appropriate account.
  2. Set "Misc. Inv. Expense" for the transaction type.
  3. Select "XYZ - XYZ Corp." for the security.
  4. Enter 1,259.99 in the "Decrease" amount field or enter -1,259.99 with the minus sign in the "Amount" field as you are applying the cash received from the option "Sell" transaction to the cost basis of the stock. This will reduce the account's cash balance and offset the increase from the option "Sell" transaction.
  5. Set the other details for the transaction, such as adding a memo about referring to being the cost basis of the option, as desired.
  6. Save the transaction.

Note Note: The account's cash balance will increase with the option sale transaction, then be increased by the stock sale, and then be decreased by recording the misc. investment expense transaction. The total change in cash balance will be the amount received for selling the stock. The value of account's holdings will decrease by the market value of the options exercised and it will decrease by the market value of the shares sold of the stock.

Note Note: Use the number of contracts and not the number of units of the underlying security for derivatives. Market prices shown for options will be calculated as: number of contracts x shares/contract x contract price. You can specify the shares/contract for a derivative if it varies from the default of 100 shares/contract.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash for the purchase was transferred from another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase removed from the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

When being assigned a derivative you will need to close the position on the derivative contracts involved, buy or sell the underlying security, and apply the premium received for the derivative contracts to the position on the underlying security. Applying the premium received for the derivative contracts to the position on the underlying security can be done by manipulating the price per share and amount in the buy or sell transaction to reflect the premium received for the derivative or by recording a separate "Misc. Inv. Income" transaction. For the sake of keeping detailed records, the examples will use the extra transaction.

Example #1 - Assignment from a call:

You are short 5 contracts for a 2022 January 21 call option on ABC Inc. stock, ticker symbol ABC, with a strike price of 50.00, that you originally received a premium of 2,490.01 for, and you are assigned while ABC Inc. stock is at 75.00. This will require three transactions: a "Buy" transaction for the option, a "Sell" transaction for ABC Inc. stock, and a "Misc. Inv. Income" transaction on ABC Inc. stock.


Note Note: If you already owned the stock before option assignment then record the stock "Misc. Inv. Income" transaction before recording the stock "Sell" transaction. If you didn't already own the stock before option assignment then record the stock "Misc. Inv. Income" transaction after recording the stock "Sell" transaction. The "Misc. Inv. Income" needs to be between the "Buy" and "Sell" transactions.

Option buy transaction steps:

  1. Create a new transaction in the appropriate account with the exercise date.
  2. Set "Buy" for the transaction type.
  3. Select the security for this option, such as "ABC Inc. Option January 2022" or "ABC220121C00050000"
  4. Set 5 for the units.
  5. Set 4.98002 for the unit price (the cost basis per contract). This will keep the option position from showing a gain or loss.
  6. The amount should be automatically calculated to be -2,490.01 (the total cost basis). If not, enter 2,490.01 in the "Decrease" amount field or enter -2,490.01 with the minus sign in the "Amount" field as you are closing out the position without wanting to shown a gain/loss on the option itself. This will temporarily decrease the account's cash balance.
  7. Set the other details for the transaction, such as adding a memo about exercising the option, as desired.
  8. Save the transaction.

Stock sell transaction steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Sell" for the transaction type.
  3. Select "ABC - ABC Inc." for the security if it exists. Otherwise enter "ABC Inc." and create the security when prompted.
  4. Set 10 for the units.
  5. Set 500 for the units.
  6. Set 50.00 for the price per share.
  7. The amount should be automatically calculated to be 25,000.00. If not, enter 25,000.00 in the "Increase" amount field or enter 25,000.00 in the "Amount" field as you are receiving cash for selling the shares. This will increase the account's cash balance.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Stock misc. investment income transaction steps:

  1. Create a new transaction in the appropriate account with the date of the purchase.
  2. Set "Misc. Inv. Income" for the transaction type.
  3. Select "ABC - ABC Inc." for the security.
  4. Enter 2,490.01 in the "Increase" amount field or enter 2,490.01 in the "Amount" field as you are applying the cash spent in the option "Buy" transaction to the cost basis of the stock. This will increase the account's cash balance and offset the decrease from the option "Buy" transaction.
  5. Set the other details for the transaction, such as adding a memo about referring to being the premium of the option, as desired.
  6. Save the transaction.

Note Note: The account's cash balance will decrease with the option buy transaction, then be increased by the stock sale, and then be increased by recording the misc. investment income transaction. The total change in cash balance will be the amount received for selling the stock. The value of account's holdings will decrease by the market value of the options assigned and it will decrease by the market value of the shares sold of the stock.

Example #2 - Assignment from a put:

You are short 5 contracts for a 2022 January 21 put option on XYZ Corp. stock, ticker symbol XYZ, with a strike price of 25.00, that you originally received a premium of 1,240.01 for, and you are assigned while XYZ Corp. stock is at 12.50. This will require three transactions: a "Buy" transaction for the option, a "Buy" transaction for XYZ Corp. stock, and a "Misc. Inv. Income" transaction on XYZ Corp. stock.


*If you already owned the stock before exercising the option then record the stock "Misc. Inv. Income" transaction before recording the stock "Sell" transaction. If you didn't already own the stock before exercising the option then record the stock "Misc. Inv. Income" transaction after recording the stock "Sell" transaction. The "Misc. Inv. Income" needs to be between the "Buy" and "Sell" transactions.

Option buy transaction steps:

  1. Create a new transaction in the appropriate account with the exercise date.
  2. Set "Buy" for the transaction type.
  3. Select the security for this option, such as "XYZ Corp. Option January 2022" or "XYZ220121C00025000"
  4. Set 5 for the units.
  5. Set 2.48002 for the unit price (the cost basis per contract). This will keep the option position from showing a gain or loss.
  6. The amount should be automatically calculated to be -1,240.01 (the total cost basis). If not, enter 1,240.01 in the "Decrease" amount field or enter -1,240.01 in the "Amount" field as you are closing out the position without wanting to shown a gain/loss on the option itself. This will temporarily decrease the account's cash balance.
  7. Set the other details for the transaction, such as adding a memo about exercising the option, as desired.
  8. Save the transaction.

Stock buy transaction steps:

  1. Create a new transaction in the appropriate account with the date of the sale.
  2. Set "Buy" for the transaction type.
  3. Select "XYZ - XYZ Corp." for the security if it exists. Otherwise enter "XYZ Corp." and create the security when prompted.
  4. Set 10 for the units.
  5. Set 500 for the units.
  6. Set 25.00 for the price per share.
  7. The amount should be automatically calculated to be -12,500.00. If not, enter 12,500.00 in the "Decrease" amount field or enter -12,500.00 in the "Amount" field with the minus sign in the "Amount" field as you are spending cash to acquire the shares. This will increase the account's cash balance.
  8. Set the other details for the transaction, such as the category or memo, as desired.
  9. Save the transaction.

Stock misc. investment income transaction steps:

  1. Create a new transaction in the appropriate account.
  2. Set "Misc. Inv. Income" for the transaction type.
  3. Select "XYZ - XYZ Corp." for the security.
  4. Enter 1,240.01 in the "Increase" amount field or enter 1,240.01 in the "Amount" field as you are applying the cash spent in the option "Buy" transaction to the cost basis of the stock. This will increase the account's cash balance and offset the decrease from the option "Buy" transaction.
  5. Set the other details for the transaction, such as adding a memo about referring to being the premium of the option, as desired.
  6. Save the transaction.

Note Note: The account's cash balance will increase with the option sale transaction, then be decreased by the stock purchase, and then be increased by recording the misc. investment income transaction. The total change in cash balance will be the cost of the stock purchased. The value of account's holdings will decrease by the market value of the options assigned and it will increase by the market value of the newly acquired shares of the stock.

Note Note: Use the number of contracts and not the number of units of the underlying security for derivatives. Market prices shown for options will be calculated as: number of contracts x shares/contract x contract price. You can specify the shares/contract for a derivative if it varies from the default of 100 shares/contract.

Tip Tip: Assign the transaction an account category, another account's name in brackets, to indicate the cash for the purchase was transferred from another account. Assign the transaction the category of the account it is in, the account's name in brackets, to indicate you do not want to have the cash for the purchase removed from the account's cash balance. If needed, add the "Category" column to view and set the category for investment transactions. Adjust the optional columns for a table by using the program's View → Columns menu or by Control-clicking on an uneditable area of the table.

Example:

You closed an account at your old brokerage, "Traders R Us", and opened an account at a new brokerage "Trade Online". You had 5 contracts for a 2022 January 21 call option on ABC Inc. stock, ticker symbol ABC, with a strike price of 50.00, at a cost basis of 2,500.00 in your old account and transferred it to your new account. This will require two transactions: a "Shares Out" transaction in your old account and a "Shares In" transaction in your new account.

Shares out transaction steps:

  1. Create a new transaction in the old account with the date of when the account was closed.
  2. Set "Shares Out" for the transaction type.
  3. Select the security for this option, such as "ABC Inc. Option January 2022" or "ABC220121C00050000"
  4. Set 5 for the units.
  5. Set 5.00 for the unit price (the cost basis per contract).
  6. Set the other details for the transaction, such as adding a memo about closing the account, as desired.
  7. The amount should be automatically calculated to be 2,500.00. If not, enter 2,500.00 in the "Increase" amount field or enter 2,500.00 in the "Amount" field as this is the cost basis of the options. This will not affect the account's cash balance, only the cost basis of the holding.
  8. Save the transaction.

Shares in transaction steps:

  1. Create a new transaction in the new account with the date of when the account was opened.
  2. Set "Shares In" for the transaction type.
  3. Select the security for this option, such as "ABC Inc. Option January 2022" or "ABC220121C00050000"
  4. Set 5 for the units.
  5. Set 5.00 for the unit price (the cost basis per contract).
  6. Set the other details for the transaction, such as adding a memo about the transfer to a new account, as desired.
  7. The amount should be automatically calculated to be -2,500.00. If not, enter 2,500.00 in the "Decrease" amount field or enter -2,500.00 in the "Amount" field with the minus sign as this is the cost basis of the options. This will not affect the account's cash balance, only the cost basis of the holding.
  8. Save the transaction.

Note Note: Use the number of contracts and not the number of units of the underlying security for derivatives. Market prices shown for options will be calculated as: number of contracts x shares/contract x contract price. You can specify the shares/contract for a derivative if it varies from the default of 100 shares/contract.

Note Note: The set transaction amount for "Shares In" and "Shares Out" transactions do not affect the account's cash balance unless there is a commission involved in moving the contracts. However, the set transaction amount is used for tracking the cost basis of the holding.

Example:

For some unknown reason your holding of ABC. Inc. 2022 January 21 call options is off and you just can't find the transaction(s) you are missing in your records. You know your holding on ABC. Inc. 2022 January 21 call options is 5 contracts with a cost basis of 2,500.00, but you show only 1 contract in the program with a cost basis of 500.00. Based on this information you determine you need to adjust your holding and add 4 contracts with a cost basis of 2,000.00.

Steps:

  1. Create a new transaction in the new account with the date of when you want the adjustment to occur.
  2. Set "Shares In" for the transaction type.
  3. Select the security for this option, such as "ABC Inc. Option January 2022" or "ABC220121C00050000"
  4. Set 4 for the units.
  5. Set 5.00 for the unit price (the cost basis per contract).
  6. Set the other details for the transaction, such as adding a memo about why the adjustment was made, as desired.
  7. The amount should be automatically calculated to be -2,000.00. If not, enter 2,000.00 in the "Decrease" amount field or enter -2,000.00 in the "Amount" field with the minus sign as this is the cost of the options. This will not affect the account's cash balance, only the cost basis of the holding.
  8. Save the transaction.

Note Note: Use the number of contracts and not the number of units of the underlying security for derivatives. Market prices shown for options will be calculated as: number of contracts x shares/contract x contract price. You can specify the shares/contract for a derivative if it varies from the default of 100 shares/contract.

Note Note: The set transaction amount for "Shares In" and "Shares Out" transactions do not affect the account's cash balance unless there is a commission involved in moving the contracts. However, the set transaction amount is used for tracking the cost basis of the holding.

See also:

Overview of investments

Investment accounts

Investment transactions

Securities

Holdings

Update security prices

Update historical prices

Position adjustments

Portfolio

Reports

Investment Values reports

Investment Gain/Loss reports

Security Transaction reports

Security types

Security goals

Security asset classes

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