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Any other bases that use the generic STAR method of accounting process the Open, Close, and Conversion transactions as they normally do in Eagle Accounting, while all of the Adjustment transactions are not available for generic STAR accounting bases.
STAT Treatment
LOT1 has a current cost of $5,000, LOT2 has a current cost of $4,000, for a total position cost of $9,000. The cash booked on the Sale of Interest transaction is $7,000, closing 75% of the position.
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Ledger entries follow. Accounts added to support the use of the equity method of accounting appear in yellow.
Account | Account | Debit | Credit |
|---|---|---|---|
1010000100 | COST OF INVESTMENTS | 0.00 | 6,750.00 |
1002000100 | INVESTMENT RECEIVABLE | 10,750.00 | 0.00 |
1011000101 | UNREALIZED APPRECIATION OF INVESTMENTS | 0.00 | 2,250.00 |
1011000103 | UNREALIZED APPRECIATION OF UNDISTRIBUTED INCOME | 0.00 | 3,750.00 |
3006000101 | REALIZED GAIN ON INVESTMENTS | 0.00 | 4,000.00 |
3003000331 | NET UNREALIZED GAIN ALLOCATED TO CAPITAL | 2,250.00 | 0.00 |
3003000401 | UNREALIZED INCOME/LOSS | 3,750.00 | 0.00 |
Other Treatment
LOT1 has a current cost of $8,000, LOT2 has a current cost of $6,000, for a total position cost of $14,000. Note that for the Other treatment, any undistributed income is booked as cost, hence the different starting point from the transaction above. The cash booked on the sale of interest is $10,750, closing 75% of the position.
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Ledger entries follow. Accounts added to support the use of the equity method of accounting appear in yellow.
Account | Account | Debit | Credit |
|---|---|---|---|
1010000100 | COST OF INVESTMENTS | 0.00 | 10,500.00 |
1002000100 | INVESTMENT RECEIVABLE | 10,750.00 | 0.00 |
1011000101 | UNREALIZED APPRECIATION OF INVESTMENTS | 0.00 | 2,250.00 |
3006000101 | REALIZED GAIN ON INVESTMENTS | 0.00 | 250.00 |
3003000331 | NET UNREALIZED GAIN ALLOCATED TO CAPITAL | 2,250.00 | 0.00 |
4001000107 | UNDISTRIBUTED INVESTMENT INCOME | 3,750.00 | 0.00 |
4001000108 | INVESTMENT INCOME | 0.00 | 3,750.00 |
Both transactions create a cash receivable record, settled separately.
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