Page 2 - Accounting - Maintaining Transaction Records cont.   [3 Go Back]

Stock Splits
        Following a Stock Split, all transaction records need to be brought up to date. This chore is not only necessary for all transactions that occur prior to the split, but will likely effect all data entry values. To complete the adjustments made necessary by a Stock Split, return to the Data Entry page, choose 'Tools' from the menu, then select 'Stock Splits' from the drop down that appears. The user will be prompted first for the effective date of the Stock split, and then the split ratio. These initial dialog boxes are followed by questions asking if Today's Stock price, fundamental data entered on the Data Entry page, and Transaction Records need to be Split adjusted. When the latter question is answered 'Yes', all the transaction records prior to the Split Date will be revised to reflect the Stock Split. An additional transaction will be inserted chronologically with the Stock Split date, and the Split ratio a part of the transaction record. To indicate that a transaction has been split adjusted, Equity Evaluator will add an asterisk at the end of the transaction description. If a second Split occurs, a second asterisk will be added. All changes to the record will be automatically saved.

Dividends
        Equity Evaluators accounting capabilities can be used to help prepare and file tax returns. By selecting 'Tools', followed by 'Dividends' from the menu on the Accounting page, the program will compile a total of all dividends that were issued in the prior year, as well as the total amount issued so far this calendar year. Last years dividend totals can be used to anticipate or confirm the 1099 forms that are a mandatory part of tax filings, while the year to date total can come in handy planning for next years tax returns.

Full or Partial Sale
        If a Full or Partial Sale of the Stock position is being considered or has occurred, Equity Evaluator can be used to calculate the cost basis, plus the short and long term capital gains or losses. From the menu on the Accounting page, click 'Tool', then select 'Full or Partial Sale' from the drop down box. Shown to the right, the form that appears will use today's date as the default for the Sale's Date, and the full number of Shares held,  as the default for the amount to be sold. If need be, alter these two values to the actual or anticipated date, or the number of shares in a partial sale, rather than the default values. Then enter either the actual or anticipated funds from a sale. Next, click the command button labeled 'Calculate Taxes'. The view will expand to include a box labeled 'Schedule D', below the 'Sales Information' box. When appropriate, this second box will be divided between short and long term gains as shown in the example to the left. Both the short and long term sections display the number of Shares being sold, the Sale Date, proceeds, or Sale price, Cost basis, and the Gain or Loss.
        

In this example a full sale was used. If this had been an actual Sale, the next step would be to click the command button labeled 'Record this Sale'. A dialog box will offer the user the opportunity to print the form for their records, while informing the user that all the transaction records will be deleted if the full sale process is completed and the file is saved. In the case of a partial sale, only the transaction records effected by the sale will be deleted. If the shares purchased in a single transaction record are divided between a partial sale and the shares still held, an amended transaction record will be inserted reflecting the portion of shares remaining after the partial sale.

Account Totals -
        Multiple direct purchase accounts are easy to compare with Account Totals. This feature can be accessed by clicking the 'Go To' menu item on the Accounting page, then selecting 'All Account Totals' from the drop down box. If there are more than ten files with transaction records, initially only the first ten will be displayed alphabetically. To view any Account Totals not visible, click the down arrow on the Up/Down control near the left hand edge of the page.

         As illustrated above, when the current Stock price has been entered on the Data Entry page, this value will appear in the column below the 'Enter Today's Stock Price' label, in the same row as the totals from the file presently open. The 'Market Value' and 'Gain/Loss' totals to the right of the Stock price column are calculated using the Stock price posted. To calculate these values for the other Account Totals, enter their current Stock price of the shares held in the Stock price column. use the tab key to navigate. Then click the command button labeled 'Calc' to complete the necessary calculations, posting the 'Market Value' and 'Gain/Loss' values in the right hand columns.

        To print a copy of this view, choose 'File' from the menu, then click the 'Print' choice on the drop down. Equity Evaluator will produce a printer friendly copy. 

        This concludes the review of the Accounting software for the Equity Evaluator program. This part of the program is used to keep a running total of the Shares held through a direct purchase Stock account. The current status of the account holdings is updated each time the file is opened and today's Stock price is provided. Tax chores are easy, whether it's accounting for dividends on a Schedule B, or a full or partial sale using Schedule D. Equity Evaluator is the comprehensive Accounting solution for direct purchase Stock accounts.