Recording dividend reinvestment
ttop at mac.com
Fri Dec 30 13:25:38 EST 2005
I have mutual funds that pay dividends. I'm a GnuCash newbie, and I
read the relevant section in the user guide, but I'm not sure that
I've recorded my dividend correctly.
In this case it was a dividend of $14.08, reinvested in .439 shares,
priced at $32.07.
The guide said to record it in the mutual fund account as income from
an Income:Dividend account.
So in the register for the fund, I record a Transfer from
Income:Dividend:Non-taxable, .439 shares, 32.07 price. The
transaction shows it increasing my share balance by .439. So far, so
good, I think.
The strange-looking part to me is if I jump to the
Income:Dividend:Non-taxable account, it shows Income of 14.08, for a
balance of -14.08. Is this correct? The negative balance is what has
me thrown off -- I'm not an accountant, so I don't know if this is
what I should expect? A negative income balance seems odd to me. I
just want to make sure I'm getting off on the right foot here.
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