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    seashell99's Avatar
    seashell99 Posts: 42, Reputation: 4
    Junior Member
    		  
    #1

    Sep 9, 2008, 07:43 AM
    Stock Investment
    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's Avatar
    bethann31000 Posts: 6, Reputation: 1
    New Member
    		  
    #2

    Sep 10, 2008, 01:18 PM
    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's Avatar
    seashell99 Posts: 42, Reputation: 4
    Junior Member
    		  
    #3

    Sep 10, 2008, 04:24 PM
    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?
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