Baby Bond Interest

[drwehby]

Hi Mark,
I have a few baby bonds (exchange-traded bonds) that pay interest quarterly in a Fidelity account. I have entered them correctly (I believe) in the "Investment Properties/Income" tab. The interest shows up in my default cash account (the entry shows date, shares, price = $1, fee=0, total, type = purchase, and "INTEREST" in the Memo field) but there is no corresponding entry in the baby bond investment account. Currently, I manually edit the cash account Memo field to reflect the particular baby bond from which the interest was received. Is this the way it's supposed to work? Do ALL interest payments work this way (that is, an entry only identified as INTEREST in the cash account, but no corresponding interest entry in the security's investment account)? If so, this is different from how dividends are recorded, as these identify the source of the dividend in the cash account, and there's a corresponding entry in the security investment account.
Thanks for your help,

[Mark]

Hi drwehby,

No, that isn't how it should work. You should have a distribution of type "Interest Income" that is not reinvested (distributed), and a matching buy into your cash account. If you have an example log file showing how Fidelity is reporting this in the transaction retrieve, please email it to me, and I can take a look. See "Help / Logs / Transaction Retrieve". Please send both the raw and parsed versions.

[drwehby]

Hi Mark,
OK, I'll have a look later today.
Thanks for your rapid response.