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

[Larry Evans]

On 03/09/2015 10:40 AM, Larry Evans wrote:
> On 03/07/2015 05:59 PM, Alice Lee wrote:
>> 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.   
>>
> 
> Thank you Alice for walking me through it.
> Following your instructions, it now works and has
> been uploaded to:
> 
> https://dl.dropboxusercontent.com/u/68452003/accrued_interest-alee_levans-right.gnucash
> 
> The alternative method, which I mentioned in one of my first posts:
> 
> http://lists.gnucash.org/pipermail/gnucash-user/2015-February/058965.html
> 
> and which also has been uploaded to:
> 
> https://dl.dropboxusercontent.com/u/68452003/accrued_interest-csingley_levans.gnucash
> 
> uses 1 less account and doesn't require learning about accounts
> receivable.  What is the advantage of the accounts receivable method
> over the alternative one which uses less accounts?
> 
Since, apparently, there's no interest in these uploaded files,
I'll delete them if there's no interest expressed in the next
few days.

-regards,
Larry