GnuCash: how to enter the purchase of a corporate bond with accrued interest

[Larry Evans]

On 10/21/2010 06:04 AM, Christopher Singley wrote:
> On Thu, Oct 21, 2010 at 12:36 AM, JDDomine <jddbusiness at juno.com> wrote:
>> I have not figured out how to enter the purchase details of a corporate bond
>> with accrued interest.  If the interest is rolled into the purchase price,
>> it would erroneously affect any capital gains calculation if / when the bond
>> is sold or called.  How can this be handled with GnuCash??
> 
> Accrued interest doesn't increase your cost basis; it is interest
> expense.  You report it to IRS as a negative number on Schedule B,
> where it should offset items of interest income coming in on
> f1099-INT.
> 
> You can book it as two separate transactions - one for the securities
> purchase, and another for the payment of interest.

To see if I understand correctly, I've provided screenshots of a simple
account tree, the Bond asset account ledger, and the Bond interest
income account, and the corresponding irs Schedule B.

Do these screenshots accurately reflect what you've said above?

TIA.

-regards,
Larry

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