[GNC] How can I record reinvestment of Treasury securities?

[R Losey]

I do this with my bank - I have CDs instead of a T-bill, but I think the
procedure is the same. Note that when they automatically re-invest (I
assume you mean auto-renew), what is really happening is that one CD /
T-bill matures, and the accumulated funds are used to purchase a new one.
Thus, there are two different CDs (T-Bills) at play (I'll use CD1 and CD2
below; I think T-bills will be handled similarly, but I'll just usd "CD"
below)

Under the financial institution, I have an "CD account" and under that are
all of the CDs.

CD1 is for $1,000 earning 4.5% interest  for 1 year.

So, whenever CD1 was purchased, there is a debit to the CD1 account from
the financial institution.

(remember that debit is the left column, and credit is the right column).

As interest is paid (monthly, quarterly, or at maturity), you will enter
debits into the CD1 account with the interest; I use "Income:Interest
Income:Taxable", but you will use whatever account suits your needs.

When CD1 matures, the final value should be roughly $1045.00. You will then
create a CD2 account, and credit CD1 for $1045 and debit CD2 for $1045 (and
so on).


On Mon, Dec 16, 2024 at 8:39 PM Art Chimes <artsonline at gmail.com> wrote:

> Thanks for the quick reply. I'm struggling to get the complete picture into
> one transaction. Mainly because I think of it as one transaction (albeit
> one that technically takes place over a period of days, but also because it
> seems more elegant that way. I still would love to see a screenshot,
> though....
>
> -Art-
>
> On Mon, Dec 16, 2024 at 8:41 PM Christopher Lam <christopher.lck at gmail.com
> >
> wrote:
>
> > If I understand correctly, You would typically input the transaction as a
> > dividend payment into cash first, then immediately afterwards use all the
> > released cash towards a purchase of additional securities. You can input
> > them manually or use the Stock transaction assistant.
> >
> > Alternatively you may input as a complex transaction with the dividend
> and
> > reinvestment, however the stock transaction assistant does not offer it.
> >
> > On Tue, 17 Dec 2024, 9:10 am Art Chimes, <artsonline at gmail.com> wrote:
> >
> >> I have purchased T-Bills and other treasury securities with an automatic
> >> reinvestment feature. Treasury Direct features this, as does Fidelity
> and
> >> probably other brokerages.
> >>
> >> Conceptually it shouldn't be the head-scratcher I seem to be making it
> out
> >> to be. I don't think of this as an exotic transaction and yet I've been
> >> completely unable to find an explanation I can understand (My fault, I'm
> >> sure). What I would really like to see is an actual screen shot showing
> >> how
> >> to enter the various pieces of a transaction that involves the return of
> >> the par value of the bond, the assignment of interest, the purchase of
> the
> >> replacement bond once the auction determines the price to be paid.
> >>
> >> My head hurts just typing this. ;-)
> >>
> >> I couldn't locate any relevant documentation that helps me.  Thanks.
> >>
> >>
> >> --
> >> Art Chimes  |  Arlington, Virginia  |  703·407·2306  |  Google Voice
> >> 202·643·9638‬
> >> _______________________________________________
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> >
>
> --
> Art Chimes  |  Arlington, Virginia  |  703·407·2306  |  Google Voice
> 202·643·9638‬
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-- 
_________________________________
Richard Losey
rlosey at gmail.com
Micah 6:8