Difference between revisions of "Stock Transaction Assistant"

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(stock assistant)
 
(sale)
 
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| STOCK || Fees || $9.95 || ||
 
| STOCK || Fees || $9.95 || ||
 
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|}
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The final page summarises the transaction splits, and offers to create the transaction when [Apply] is pressed. If there are any errors found, the [Apply] button will be disabled, and the previous pages may be amended by pressing [Back].
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=== Selling stock ===
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On 1-Feb, the share price has increased from $100 to $120 per share. You decide to some (e.g. 30 units) of the stocks owned. The total value of these shares is 30 * 120 = $3,600. The broker fee is $9.95; therefore the amount received in cash is $3590.05. These 30 units of shares sold have increased by $20, therefore the capital gains on this transaction is 30 * 20 = $600.
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Launch the Stock Transaction Assistant from Action > Stock Transaction Assistant, or using the toolbar.
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==== Transaction Details ====
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[screenshot1 - stock assistant]
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Enter the date of purchase (e.g. 01-Feb) and description (e.g. Selling stock).
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==== Transaction Type ====
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[screenshot2 - 2 types]
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As this stock account balance is positive, several options are available. Choose "Sell"
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==== Stock Amount ====
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[screenshot1 - stock amt]
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Enter the number of stock units sold; in this case the amount is 30. Note the next balance of 50 units is displayed.
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==== Stock Value ====
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[screenshot1 - stock val]
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Enter the value of stock units purchased. The 30 units stocks are valued at $3,600. Note the price of $120 per unit is shown.
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==== Cash ====
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[screenshot1 - cash]
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Enter the cash account to receive the proceeds of the stock sale, and the monetary amount received. This would typically be the broker cash account. Input $3590.05.
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==== Fees ====
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[screenshot1 - fees]
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Enter the expense account to tally the broker fees, and the fee amount. This would typically be an expense account. Input $9.95 as the amount.
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==== Dividend ====
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This page is not relevant for a stock sale, and is automatically skipped.
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==== Capital Gains ====
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This page records the capital gains incurred in this transaction. Because the stock was sold at a profit of $600, this amount must be recorded as income. The capital gain balancing split will be recorded in the stock account.
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==== Finish ====
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[screenshot - finish]
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{| class="wikitable"
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! Account || Memo || Debit || Credit || Units
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|-
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| STOCK ||  ||  || $3,600 || -30 STOCK
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|-
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| Broker || Cash || $3,590.05 || ||
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|-
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| STOCK || Fees || $9.95 || ||
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|-
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| Income ||  ||  || $600 ||
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|-
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| STOCK ||  || $600 || ||
 
|}
 
|}
  
 
The final page summarises the transaction splits, and offers to create the transaction when [Apply] is pressed. If there are any errors found, the [Apply] button will be disabled, and the previous pages may be amended by pressing [Back].
 
The final page summarises the transaction splits, and offers to create the transaction when [Apply] is pressed. If there are any errors found, the [Apply] button will be disabled, and the previous pages may be amended by pressing [Back].

Latest revision as of 13:09, 26 September 2022

A Sample Investment Portfolio

The examples in this section use Stock Transaction Assistant to illustrate a series of stock activity. The (fictitious) stock will be purchased, partially sold with a profit, will undergo a stock split, and will issue a dividend.


Initial purchase

From an empty stock register, an initial 80 shares of this stock are purchased on 1-Jan. The total value of these shares is $8,000, i.e. the share price is $100. The broker charges $9.95 for this transaction. The broker deducts $8,009.95 for this transaction.

Launch the Stock Transaction Assistant from Action > Stock Transaction Assistant, or using the toolbar.

Transaction Details

[screenshot1 - stock assistant]

Enter the date of purchase (e.g. 01-Jan) and description (e.g. Initial purchase).

Transaction Type

[screenshot2 - 2 types]

As this stock account balance is zero, only "Open Long" and "Open Short" are available. Choose Open Long.

Stock Amount

[screenshot1 - stock amt]

Enter the number of stock units purchased; in this case the amount is 80. Note the next balance of 80 units is displayed.

Stock Value

[screenshot1 - stock val]

Enter the value of stock units purchased. The 80 units stocks are valued at $8,000. Note the price of $100 per unit is shown.

Cash

[screenshot1 - cash]

Enter the cash account to fund the purchase from, and the monetary amount withdrawn. This would typically be the broker cash account. Input $8,009.95 which includes the broker fee.

Fees

[screenshot1 - fees]

Enter the expense account to tally the broker fees, and the fee amount. This would typically be an expense account. Input $9.95 as the amount.

Dividend and Capital Gains

These pages are not relevant for a stock purchase, and are automatically skipped.

Finish

[screenshot - finish]

Account Memo Debit Credit Units
STOCK $8,000.00 80 STOCK
Broker Cash $8,009.95
STOCK Fees $9.95

The final page summarises the transaction splits, and offers to create the transaction when [Apply] is pressed. If there are any errors found, the [Apply] button will be disabled, and the previous pages may be amended by pressing [Back].


Selling stock

On 1-Feb, the share price has increased from $100 to $120 per share. You decide to some (e.g. 30 units) of the stocks owned. The total value of these shares is 30 * 120 = $3,600. The broker fee is $9.95; therefore the amount received in cash is $3590.05. These 30 units of shares sold have increased by $20, therefore the capital gains on this transaction is 30 * 20 = $600.

Launch the Stock Transaction Assistant from Action > Stock Transaction Assistant, or using the toolbar.

Transaction Details

[screenshot1 - stock assistant]

Enter the date of purchase (e.g. 01-Feb) and description (e.g. Selling stock).

Transaction Type

[screenshot2 - 2 types]

As this stock account balance is positive, several options are available. Choose "Sell"

Stock Amount

[screenshot1 - stock amt]

Enter the number of stock units sold; in this case the amount is 30. Note the next balance of 50 units is displayed.

Stock Value

[screenshot1 - stock val]

Enter the value of stock units purchased. The 30 units stocks are valued at $3,600. Note the price of $120 per unit is shown.

Cash

[screenshot1 - cash]

Enter the cash account to receive the proceeds of the stock sale, and the monetary amount received. This would typically be the broker cash account. Input $3590.05.

Fees

[screenshot1 - fees]

Enter the expense account to tally the broker fees, and the fee amount. This would typically be an expense account. Input $9.95 as the amount.

Dividend

This page is not relevant for a stock sale, and is automatically skipped.

Capital Gains

This page records the capital gains incurred in this transaction. Because the stock was sold at a profit of $600, this amount must be recorded as income. The capital gain balancing split will be recorded in the stock account.

Finish

[screenshot - finish]

Account Memo Debit Credit Units
STOCK $3,600 -30 STOCK
Broker Cash $3,590.05
STOCK Fees $9.95
Income $600
STOCK $600

The final page summarises the transaction splits, and offers to create the transaction when [Apply] is pressed. If there are any errors found, the [Apply] button will be disabled, and the previous pages may be amended by pressing [Back].