Hello,
We received some stock which sold for higher than what it was when we got it. How do I go about processing the amount to pay off a pledge and also place the gain on the stocks into the right place financially (since we don't want to record the extra as a gift or a contribution made by a person)
Thanks!
We record the difference into miscellaneous income.
To be more specific, in Tessitura, the value of the stock that is booked to Tessitura to pay off the pledge, goes into a (asset) holding account in the G/L. Then a journal entry is made in the G/L to record the actual funds deposited, any gain or loss on the stock sale, and to clear out the holding account and book to contributions receivable.