How do I record a sole prop. who is purchased stock and how are the adjusting entries recorded when there is a sale/trade?

thanks!

bethann31000

Open a new balance sheet account under Assets "ABC Stock". CR your bank with the check amount, and DR the new stock account.

When it is sold, on a tax return they want to know the number of shares, the stock name, the date purchased, and the date sold, the basis ( what you bought them for ) and the sales price, including commission if there is one. By subtracting the sales price from the basis, you determine either a gain or loss.

seashell99

thank you. That is what I thought, but I wanted to make sure. So, just keep recording the money he invests for the year and then only when he sells is there a gain/loss?