I cannot find the answer to a question posted in Jan 2010 about tracking unrealized gains and losses. I set up the "contra" sub account of the investment and an equity account for the investment. How do I make the entries into these accounts?
Here is what I do: The investment account is an Other Asset. I enter the Gain or Loss by using an Interest Income account called Gain or Loss on Investment XYZ, under Other Income. I make a Journal Entry: For a Gain : Debit the Other Asset Investment Account and Credit the Interest Income account. For a Loss the other way around.
I've seen it done in a For-Profit entity using an other asset account for historical cost transactions, a second other asset account to adjust to Market Value and an Equity type account that mirrors the Market Value account.
I don't know if things are different for a Nonprofit entity , though..
