Yes, the balance in the account should appear on the balance sheet in order for the balance sheet to balance. True, the sold asset should have a zero balance after it is sold. Since the starting balance was changed after the security was sold, then the sell transaction or some transaction should be adjusted to account for the change.
If the change to the starting balance was from unrealized gain then unrealized gain should also be correct. If it was from unrealized gain, it may have been ignored since unrealized gain is relieved for the difference between cost and balance at the time of the sale.
If the adjustment was to the cost basis then the cost and tax basis should be adjusted so the Schedule D is correct.
Yes, if the starting balance of a sold asset is changed then the sold transaction also needs to be changed.
Any change to the starting balance affects the monthly balances since the transaction activity is added to the starting balance to determine the monthly balances.
I hope this explains the situation for you. If you need futher explanation then let us know.
[This message has been edited by John (edited 03-05-2004).]
[Note: This message has been edited by radiodave]
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posted 03-04-2004 11:05 AM
