Accounting for the transfer of DRIP shares to our brokerage account
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Accounting for the transfer of DRIP shares to our brokerage account Tania asked....
We owned 40.9105 shares of Tricon Global in a drip
account. We transferred the stock to our broker and received a 38.02 check
plus the stock certificate. How would I enter this information into my
bivio club bookkeeping. We now show 40 Shares of Stock with
our broker.
This is a good question that comes up again from time to time.
Shares of any stock that your club owns may be held in a Dividend
Reinvestment plan (DRIP), in the club's hands in certificate form, or in street
name at your broker. From an accounting standpoint it doesn't matter
how or where your club holds those shares. From an accounting
standpoint you must simply maintain records of the cost basis of each block, the
purchase date, and, if applicable, the sale date.
So, to answer Tania's question, "How would I enter this
information into my bivio club bookkeeping", simply enter the sale
of the .9105 shares for $38.02. That's it.
Thanks for using bivio!
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