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Subject Author Date
Re: Handling partial calls Sue Welborn 04-12-2006
Posted by Sue Welborn on April 12, 2006, 11:56 pm
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 I guess the correct terminology is a partial redemption occurred. I had a
bond issued by the Nebraska Finance Investment Authority that cost
$10,100.00 when I purchased it in June 2003 (100 shares @ 101). The
description that was downloaded with my Feb 2006 statement from AG Edwards
said it was a partial call that resulted in my receiving $5,000. I can see
the $5,000 being deposited in my money market account, but the number of
shares remains at 100 (I think it should only be 50). I'm completely
confused as to what is happening here; does this explain it any better?
Thanks!

Sue

> Hi, Sue.
>
> I don't think I ever heard of a "partial call of a bond". Do you mean
> that the issuer called $300 of a $1,000 bond, for example? Or did they
> call 30 bonds of the 100 bonds that you held? Or something else?
>
> Could you please explain just what happened?'
>
> Remember the Golden Rule of Quicken, also known as the two-step method:
>
> Step 1: Understand what really happened "in the real world".
>
> Step 2: Record that in Quicken.
>
> Trying to do Step 2 before Step 1 is almost guaranteed to make a mess.
> :>(
>
> RC
> --
> R. C. White, CPA
> (Retired - no longer licensed to practice)
> San Marcos, TX
> rc@grandecom.net
>
>> Hello all,
>>
>> I've searched the newsgroup and can't find anything related to this
>> question; how do you handle a partial call of a bond in Quicken? This
>> occured on my downloaded statement from AG Edwards, and when Quicken
>> wanted more information on the transaction, I managed to make a bad
>> situation worse as now my investments don't balance. Any assistance is
>> greatly apreciated.
>>
>> Sue
>



Posted by danbrown on April 13, 2006, 9:44 am
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 You're right, it appears to be a "partial redemption" AKA a partial
call.

The transactions to clean-up the records SHOULD appear on your March
statement (well, actually they should have appeared on your February
statement, but that's another story). On the March statement you
should expect to see:
1) $5000 worth of bonds removed (50 shares in Quicken terminology) --
which you can treat as a sale @ $100 ... note that this WILL result in
a capital loss as of the redemption date. It's a loss since you
purchased these bonds at $101 and "sold" at $100.
2) There should be some interest payment for the called bonds FROM
the date of the previous payment TO the date of the redemption. The
exception to this would be IF the bonds were called ON the interest
payment date.

If these transactions don't appear on your March statement, call and
raise the roof with your broker at AG Edwards.

db


Posted by Sue Welborn on April 19, 2006, 6:30 pm
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Dan - thanks for the information. I finally figured out that I needed to
change the Return of Capital transaction that Quicken automatically entered
to be a sale. Now my shares are correct and everything balances as it
should. Thanks again for your assistance!

Sue

> You're right, it appears to be a "partial redemption" AKA a partial
> call.
>
> The transactions to clean-up the records SHOULD appear on your March
> statement (well, actually they should have appeared on your February
> statement, but that's another story). On the March statement you
> should expect to see:
> 1) $5000 worth of bonds removed (50 shares in Quicken terminology) --
> which you can treat as a sale @ $100 ... note that this WILL result in
> a capital loss as of the redemption date. It's a loss since you
> purchased these bonds at $101 and "sold" at $100.
> 2) There should be some interest payment for the called bonds FROM
> the date of the previous payment TO the date of the redemption. The
> exception to this would be IF the bonds were called ON the interest
> payment date.
>
> If these transactions don't appear on your March statement, call and
> raise the roof with your broker at AG Edwards.
>
> db
>



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