How to record early redemption of bond in my brokerage account.

Question

A bond in my brokerage account was called early. What is the proper way to record the receipt of funds and redemption of the bond in Quicken Premium?

Tom Young · Answer

While "Bond sold" is the correct action to take here, there may be other entries you need to make first.  
For example, if the bond was issued with Original Issue Discount (OID) or if you bought the bond with a market discount or premium or the bond was a zero coupon bond, then you'd want to make sure that the basis was properly stated first, (with offsets to interest income), before making the sale .  Otherwise all the income/loss associated with the early call would be posted as capital gain or loss, which wouldn't be correct.

Rocket J Squirrel · Answer

Bond sold.