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

[Christopher Singley]

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.