Williams Partners (WPZ) Stock Split

[heidiasst]

Not quite sure how to record a stock split that took place last February. WPZ had an odd split that resulted in receiving fractional shares that ended up as sales (cash in lieu of).

I have never used the split option (didn't even know it was there until today).

Do you have a tutorial that would walk me through this transaction?

Heidi

[Mark]

Hi Heidi,

We don't have a tutorial that specifically goes over entering a split transaction. In this case it is usually recorded as a combination of 2 transactions:

Split
Sell for partial shares

Record the split as it happened, on the date it happened. Record it at the correct ratio, even if you end up with fractional shares. For the fractional shares that you received cash for, record a sell transaction. So, if you ended up with 50.25 shares after the split, record a sell for 0.25 shares for however much you received for these fractional shares.