Investment Account: How book gain on share conversion transactions
My broker implemented a share conversion operation whereby shares in one fund were swapped with shares of another. For example, 10 shares of VOYA GLOBAL EQUITY C SHARE CLASS were swapped out for 7 shares of VOYA GLOBAL EQUITY A SHARE CLASS. All transactions were downloaded into Quicken which defaulted them to a series of "Addeds" and "Removeds." The old shares went out at basis and the new shares came in at market. But no gain was ever recognized. My problem is how to account for this step up in basis? I now have what is essentially a one-sided accounting entry in my system: an increase in asset value without any corresponding revenue recognition. It doesn't matter for tax reporting because this is a 401K account. However, when I run an income statement I am short the gain that should have been recognized on conversion. The income reported no longer ties my beginning and ending net worth together, it is short by the amount of the conversion gain. I can run the income statement with "All Transfers Included" and the gain will show up there as "Bal Fwd 401K Morgan Stanley" but this is not proper reporting. I could go back and adjust the basis in each of the 50+ conversion transactions but this is almost a day's worth of work with the calculations and data entry. What I want to do is just book the gain in a single entry. But what is the other side? I credit a gain and debit what? And how? I just need to get the gain (i.e., the bumped up basis) properly on my books. Does anyone have any suggestions?