Chesapeake Energy spun off Seventy Seven Energy. Chesapeake Energy shareholders received one share of Seventy Seven Energy for every 14 Chesapeake shares owned. Chesapeake Energy is considered the parent company.

The cost basis allocation information from IRS form 8937 can be found on Chesapeake Energy web site at:

https://www.chk.com/Investors/Documents/SSE%20Cost%20Basis%20Form%208937.pdf  

This action is a simple spinoff transaction in the accounting software.  The information below is based on the information available from the cost basis allocation information on the Valero web site.

The Spinoff Entry

Go to Transactions > Spinoff  or Accounting > Securities > Record spinoff of securities depending on the version of the software being used. If you are unfamiliar with spinoff transactions you can get help at this url: https://www.iclub.com/support/kb/default.asp?page=normal_spinoff

Here is the information you need to complete the spinoff.

Date: 6/30/2014

Select Parent Security (or Parent Company) : Chesapeake Energy (CHK)

Remaining Basis Percentage: 94.23

Cash received:  See your broker statement for cash-in-lieu received

Spinoff  Security (or Symbol of New Company) : Seventy Seven Energy (SSE)

 Shares received : .07143  x (#of CHK  shares owned)   (Remember to include fractional shares.)

For example, if you owned 100 CHK shares, you should receive .07143  x 100 = 7.143 SSE shares.

Price Per Share : 25.06 (Closing price on 7/1/2014)  

Save the transaction and the spinoff has been entered.