We reconcile to a figure that not only includes our operating bank account, but also other accounst, including some stock clearing account. In December [our year end] we had one of those accounts report a balance, for which we did not receive the settlement funsds until January. This stock gift was posted as December business, and is in our reconcilaition as an outstanding deposit.

The reconciliation is out of balance by the amount reported by brokerage, which is in the bank statement ending balance.I would be much interested in comments as to how others handle this situation.

Hi Jim:

I have my stock donations recorded as a debit to a stock account held with our broker and of course a credit to a revenue account.  The book value is an average between the high and low for the day.

When the stock is sold, the stock account is credited and a cash account is debited.  The difference would be a gain or loss on the sale.

If you have any questions, you can call me at (212) 763-4368.

Harry Jellinek, Director of Finance

National Down Syndrome Society

When we received stock gifts, our acconting dept values the stock at the mean price for the day the donor has released the stock to our foundatio.

The cost value is then entered into Raiser's Edge and posted as Short term investment account and credited to  Contribution when we do posting into our Financial Edge general ledger from Raiser's Edge.

Stock is sent over to our brokerage firm to be sold. We do not hold stock for long term investments, our polciy is to sell right away

Brokerge firm notifies us of the proceeds with a check or credited to our bank.

Accounting dept then makes a journal entry to reconcile with the bank as follows :

Dr, Cash in Bank

Cr.   Short term investment (Cost)

Dr/Cr Gain or loss on sale of securities.

Jim,

I usually record the difference between the gift amount and the brokerage statement amount as unrealized gain/loss. 

Bev Welling
Lowell Observatory