How do I record capital gain dividends?
To report the capital gain dividend as an increase in inventory:
- From the Accounts menu, choose Initial/Supplemental Inventory.
- Create or select a supplemental inventory asset in category Other Assets.
- From the Transactions menu, choose Cash Receipts.
- In the Classify As selection box, choose Collection of an Asset.
- In the Asset/Account (Credit) selection boxes, choose the asset from Step 2 above.
To report the capital gain dividend as an increase in receipts:
- From the Transactions menu, choose Cash Receipts.
- In the Classify As selection box, choose Other - Principal.
- In the Asset/Account (Credit) selection boxes, choose Principal Receipts followed by an appropriate account.