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Accounting for Receipt of a Stock Donation

I'd like to get some perspective on situations that may arise in our organization and be sure that we are compliant withing GAAP/FASB guidelines. We've recently switched from Cash Basis to Accrual Basis. I understand that this may not be the simplest way to record the transaction but it does record it accurately and I believe in compliance with GAAP/FASB guidelines. Please review my questions below and let me know your thoughts. I seem to be the type of person who likes to see all the steps laid out right in front of me so I can follow the trail ….blessing or curse? LOL. I even went “old-school” and used T-Accounts!!! Now, I will state that our policy is to pretty much sell the stock almost immediately, but I don’t like leaving out the details and would rather be transparent about all the financial transactions taking place. I took the day’s (date of receipt of stock into our Brokerage Account) high and low and averaged that to get my FMV. This doesn’t necessarily match the figure appearing on our Investment statement. Does that matter? I have the information in an excel spreadsheet, but am not sure how I can upload it here for review. (even in pdf format)... Is this possible? If not, let me know and I will post the information in a reply as it lists out all the journal entries. 1. Do each of the transactions in the attached file make sense and are they accurately recorded? 2. Should Unrealized Gain/Loss from Sales of Securities be recorded in its own account (Income account) or is it sufficient to just record in Miscellaneous Revenue/Income(and still be GAAP/FASB compliant), understanding that if our losses exceed our gains, these transactions will mask other “true” miscellaneous income transactions in the balances and possibly be reflected with a debit balance instead of credit? [see how I have it tentatively recorded in attached file] 3. Should Dividends Earned in our Brokerage Account be recorded in its own “Dividend & Interest Revenue/Income: Securities” account or would it be compliant within GAAP/FASB guidelines to also include in Miscellaneous Revenue/Income? [Debit to the Brokerage Account and Credit to the Income Account]


(unemployed) |

Entries if there is a Gain over FMV

Date Stock Donation Rec'd 01/29/15
Qty xxxx
Symbol TXN
Description Texas Instruments, Inc.
High 54.86
Low 53.41
Avg 54.135
Fair Market Value Qty of Shares donated x Avg

At Time of Receipt of Donation 01/29/15
Debit: 1500 - Marketable Securities Stock Donation - TXN (1008)
Credit: 3298 - Other Designated Gifts Stock Donation - TXN (1008)

At Time of Sale/Settlement 02/05/15
Debit: 1200 - Fidelity Brokerage Stock Sale - TXN (1008), Principal
Credit: 1500 - Marketable Securities Stock Sale - TXN (1008)
Debit: 7013 - Professional Fees Stock Sale - TXN (1008), Commission
Debit: 7013 - Professional Fees Stock Sale - TXN (1008), Activity Assessment Fee
Credit: 1200 - Fidelity Brokerage Stock Sale - TXN (1008), Commission
Credit: 1200 - Fidelity Brokerage Stock Sale - TXN (1008), Activity Assessment Fee
Credit: 4120 - Miscellaneous Income Stock Sale - TXN (1008), Loss

At Time of Transfer to Operating Account 02/09/15
Debit: 1000 - Checking Account Stock Sale - TXN (1008), Settlement Transfer
Credit: 1200 - Fidelity Brokerage Stock Sale - TXN (1008), Settlement Transfer

At Time of Designation of Donation 02/09/15
Debit: 3298 - Other Designated Gifts Stock Sale - TXN (1008), Designate Proceeds per Donor
Credit: 4100 - General Giving Stock Sale - TXN (1008), Designate Proceeds per Donor

When I set up the T-Accounts and record the above transactions, the net balances of each account, when totalled (because some are positive and some negative) net to zero.

In the case of a loss: there would be a debit to 4120 Miscellaneous Income (or a different account if appropriate)

(unemployed) |

Oh and we are a non profit, religious (charitable) organization.


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