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

[Alice Lee]

You made an entry 12/31 with a credit to interest income of $10, a debit to
Interest Receivable of $5 and a debit to cash of $5.  When you receive the
interest, the entry should be debit cash $10, credit Interest Receivable $5
and credit interest income $5.  Change your 12/31 entry and that will
correct your balance sheet.

When you bought the bond the debit to interest receivable was $5 now the
account will be zeroed out when you receive the interest and this would
leave you with the amount of income you actually received which was $5.   

-----Original Message-----
From: gnucash-user
[mailto:gnucash-user-bounces+alee212007=satx.rr.com at gnucash.org] On Behalf
Of Larry Evans
Sent: Thursday, March 5, 2015 2:10 PM
To: gnucash-user at lists.gnucash.org
Subject: Re: GnuCash: how to enter the purchase of a corporate bond with
accrued interest

On 03/05/2015 01:27 PM, Larry Evans wrote:
> On 03/02/2015 05:55 PM, Alice Lee wrote:
>> Wm   I did not get a private E-mail.  If you could send me the general
>> ledger with the entries, I can tell you what needs to change.
>>
>> -----Original Message-----
>> From: gnucash-user
>> [mailto:gnucash-user-bounces+alee212007=satx.rr.com at gnucash.org] On 
>> Behalf Of Wm
>> Sent: Saturday, February 28, 2015 2:13 PM
>> To: gnucash-user at gnucash.org
>> Subject: Re: GnuCash: how to enter the purchase of a corporate bond 
>> with accrued interest
>>
>> Sat, 28 Feb 2015 05:31:35 <mcs8uo$9ep$1 at ger.gmane.org>  Larry Evans 
>> <cppljevans at suddenlink.net>
>>
>>> On 02/27/2015 12:31 PM, Alice Lee wrote:
>>>> The accrued interest is not an expense.  It is a receivable which 
>>>> will be zeroed out when the interest is received.  The balance is
income.
>>
>>> I'm afraid I still do not understand.  I've tried to use such an 
>>> InterestReceivable account as you suggest; however, I can't get it 
>>> to work (as indicated by the screen shots in my private email to you).
>>
>> I haven't seen the private stuff but I think you are now going 
>> backwards rather than forwards.
>>
>>> Could you possibly provide more concrete information about how to 
>>> accomplish this?  In the example screenshots I sent to you, the 
>>> balance at year end is $1010 instead of the expected $1005.
>>> I even tried making the InterestReceivable type Accounts Receivable; 
>>> however, that didn't help either.
> [snip]
> Alice,
> 
> I tried to post to this newsgroup in reply to your latest post on Mar. 
> 2; however, for some reason, that reply hasn't appeared.
> 
> The private email Wm was referring to was the one I sent to:
> 
>   alee212007 at satx.rr.com
> 
> on:
> 
>   February 27, 2015 12:11 PM
> 
> Maybe you missed it or maybe, somehow, someone was masquerading as you 
> and I replied to them.  If so; I apologize.
> 
> Hopefully this post will appear on the gnucash.user newsgroup.
> 
> -regards,
> Larry
> 
I see the post has made it; so, I'll provide links to the screenshots that
were in my (what I thought was) a private-email to Alice.

The links are:

https://www.dropbox.com/s/cg2u2egmaac3mv4/alee-Bond.png?dl=0
https://www.dropbox.com/s/q0edql98t7fbi9b/alee-BondInterest.png?dl=0
https://www.dropbox.com/s/0kc615tes8yosx9/alee-
InterestReceivable_buy.png?dl=0
https://www.dropbox.com/s/dd97jfndk3usxa7/alee-InterestReceivable_income.png
?dl=0

The links were provided instead of attaching the .png files to save
bandwidth at the cost of a litter convenience.

-regards,
Larry



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