In General, the journal entries that are being made are as follows:
 

 

  • When the stock (gift in kind) is pledged:
     
    Debit    [GIK Pledge Receivable]

          Credit    [Revenue, Pledge revenue, G-I-K Revenue]
     

     

  • When receiving the stock:
     
    Debit    [Asset/marketable security account]

          Credit    [GIK Pledge Receivable]

     
  • When selling stock:

       
    • Stock:
      Debit    [Cash]

            Credit    [Asset/marketable security account]

       
    • Brokerage Fee:
      Debit    [Brokerage Expense]

            Credit    [Cash]

       
    • Gain or Loss:
      Debit or Credit    [Asset/marketable security account]

            Debit or Credit    [Gain or Loss on Sale].

       
     

    Define the accounts to be used for the above transactions in Records - Funds on the GL Distributions tab.
     

    It is recommended that you contact your Certified Public Accountant for specific recommendations on accounting for these transactions. For information on valuing stock and property gifts, refer to How to add stock/property gifts (BB56038)