Quicken Community is moving to Single Sign On! Starting 1/22/21, you'll sign in to the community with your Quicken ID. For more information: http://bit.ly/CommunitySSO

How do I record Viacom Fixed to Float Corporate Preferred Stock.

Jeff Richards
Jeff Richards Member
edited December 2018 in Investing (Windows)
I purchased Viacom Fixed to Float Corporate Preferred Stock.  There is accrued interest . Which type of investment transaction do I use to record in Quicken 2017 ?

Comments

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited December 2018
    In my experience "accrued interest" can be a nebulous term and depends on context.  Is this an actual cash transfer into your account?  If so, I would likely record it as an Interest income transaction.  Include an 'accrued interest' notation in the memo field.  It may also be appropriate to record it as a Dividend if that is the way the 'normal' income from this investment will be recorded.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited December 2018
    As far as I can tell Viacom has not issued preferred stock though they have issued "debentures" that carry that "fixed to floating" moniker.  A debenture is just an unsecured bond and if that's what you have then use the "Bonds Bought" action.
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    edited December 2018
    Accrued interest is most likely to be an expense on a purchase and income on a sale. If you buy a bond or debenture which is not a new issue, it has likely accrued interest prior to your purchase. You must pay for that interest.

    Record a Miscellaneous Expense transaction with the category _Accrued Int.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited December 2018

    Accrued interest is most likely to be an expense on a purchase and income on a sale. If you buy a bond or debenture which is not a new issue, it has likely accrued interest prior to your purchase. You must pay for that interest.

    Record a Miscellaneous Expense transaction with the category _Accrued Int.

    If you use the Bonds Bought action Quicken will make that expense entry for you as part of the purchase of the bond. 

    (Of course that "expense" really isn't an expense, it's a reduction of your interest income.  If the purchase of the bond and the next coupon date all occur in the same year then your income won't be misstated.  Your _IntInc will be over stated but it will be offset by that _Accrued Int expense.  With the few bonds that I've bought I've always included an "Accrued Interest" "security" that gets sold, at no gain or loss, when the coupon date occurs.)
  • Jeff Richards
    Jeff Richards Member
    edited December 2018
    Tom: Thank you.  I thought the only alternative was to select "purchase Bond transaction " within Quicken 
This discussion has been closed.