Inventory and payroll

[Phillip Shelton]

So is there any validity in multiplying the number of shares I bought in
December 1997 at $5.00 a share with the current value of $10.87 a share?

And there in lies a crux for this matter. What is the cost of a stock. Are
we recording historical cost or current cost.  If it is current cost where
do we recognize the commission that we had to pay the brocker?

-----Original Message-----
From: gnucash-devel-admin@lists.gnumatic.com
[mailto:gnucash-devel-admin@lists.gnumatic.com]On Behalf Of John Hasler
Sent: Tuesday, September 12, 2000 12:54 PM
To: gnucash-devel@lists.gnumatic.com
Subject: Re: Inventory and payroll


Phillip Shelton writes:
> What, (in your opinion John) is the number that is the result of
> multiplying the number of shares and the share price.

The purchase price?  An approximation of the cost of the purchase.

> And, (again, persumable) one buys shares to increase ones equtity. Are
> shares considered part of assets?

Of course.

> Is the unrealised value of any stock (be it shares, engines, pens or
> ... ) part of ones worth?

One normally carries securities on one's books at cost (There are
situations that require that an asset be "written down", but they are
exceptions).
--
John Hasler
john@dhh.gt.org (John Hasler)
Dancing Horse Hill
Elmwood, WI

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