How Do I Enter a Stock Split in Club Accounting 3?

The following steps describe the basic steps for entering a stock split in Club Accounting 3.

For information on specific splits, please see our Mergers, Spinoffs and Splits page at:

https://www.iclub.com/support/kb/default.asppage=transactions

 

In an ordinary stock split, the club receives additional shares based on the number of shares owned. For example, in a 3-for-2 split, the shareholders receive one additional share for every two shares owned. A stock split can include a fractional share that is sold and cash is paid to the club. This cash often appears on statements as cash-in-lieu. In a reverse stock split, the issuing company replaces the currently owned shares with fewer shares.

 

Note: Stock splits do not affect a security's total cost basis. The original cost is simply spread over a different number of shares. You can think of a stock split as a making change for a dollar a 4:1 split is no different than changing a dollar for four quarters. In both cases, you still have $1 in your hand, whether its four quarters or a single dollar bill. Also, a stock split does not affect the returns of your club portfolio.

 

 

To enter a new Stock Split transaction in Club Accounting 3

 

1) In the top toolbar, select Transactions>Stock Split

2)Transaction Date- You may use the dropdown calendar function to select a date, or you can type in the date directly into the Transaction Date field. The default is the current date.

3)Select Transaction Type- this should already be set to Stock Split.

4)Select Account- select the account to receive any cash-in-lieu from this transaction. The dropdown list includes all active accounts.

5)Select Security from the drop-down list, choose the company. If the security does not appear on the list, select Show Inactives to show securities that have been sold.

6)Shares Before Split The software knows how many shares you had before the split, and fills this out for you.

7)Split Ratio For a standard split, the first number is greater than the second. For example, 2:1 means you get two shares of stock for every one you owned. For a reverse split, the first number is less than the second. For example, 1:3 means you got 1 share for every three you owned.

8)Shares After Split The number of shares in the stock you own after the split. If you entered the Split Ratio correctly, the software will fill this out for you. You can also enter the number of shares you received as listed on your broker statement, and the software will calculate the split ratio for you.

Note: If your statement shows a whole number of shares but this field shows a whole number plus a fractional amount, such as 17.2, the program is not wrong. You should have received cash for the fractional share, which is entered in the next field below. Club Accounting will record the sale of the fractional share for the amount entered in the Cash Payment for Fractional Share field and the club will be left with a whole number of shares.

9)Cash Payment for Fractional Enter any cash received in place of a fractional share. Club Accounting will then automatically enter a Sell transaction for the fractional share for you for this amount and any fractional share entered in the Shares Received field.

9)Click the OK button to add the transaction. The Confirm Transaction window appears asking you to review the details of the entry. If the information is correct, click the OK button to record the transaction. If not, click the Cancel button to return to the Enter New Transaction Stock Split screen.