Do it as a sale rather than a redemption. -- Money will (erroneously)
report a Capital Gain transaction (but it will be zero) and will also
(correctly) report a Schedule B transaction. There's a KB article on this
which will be out soon.

--
Michael Gordon - MVP


"Baldwin Maull" <bmaull[at]worldnet.att.net> wrote in message
news:00ad01c369a7$d63d91c0$a501280a[at]phx.gbl...
- quote -

Using "return of principal" solves the interest income
problem.

It does have another problem though. When you record a
bond being called or maturing with "return of principal"
cash is added to your investment account in the value of
the bond (as would be expected) but the bond being
redeemed is not removed from your investments or reduced
in value. This is particularly annoying for GNMAs where
principal is returned monthly but money does not reduce
the value of the bond accordingly.

Each time a bond matures or is called I have to manually
add a remove shares event on the bond involved.

It's very annoying.

Someone should fix both these bugs.

- quote -

An estate bought a US Treasury bill at a discount on
10/21/02 at a price of 99.148 less commission of $43.96
for a total cash outlay of $49,626.96. The bill is payable
on 4/24/03 at par, $50,000.00.

On that day the estate recorded the $50,000.00 payment as
follows: return of purchase price $49,622.96, and $377.04
as interest under investment income. The two numbers add
up to $50,000.00. I chose "Redeem C/D Bond" as the
activity for the $49,622.96 return of the amount paid
and "Accrued Interest" for the interest portion, $377.04.

The Money program posts the entire $50,000.00 as "Interest
Income," an obvious error.

1.) Is the posting to "Accrued Interest" wrong? If so, how
should the payment of interest at maturity be recorded?

2.) Is the activity, "Redeem CD/Bond" in error? If so, how
is that activity employed by Money? Should the payment of
the $49.622.96 be recorded as "Return of Principal?"

3.) Are two postings necessary, one to record payment of
principal and the other as investment interest.

Thank you for your help.

Baldwin Maull
bmaull[at]worldnet.att.net