Valix Finacc vol 1 Problem 12-10

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 12-10

1.  Held to maturity securities                                                            8,598,400

            Cash                                                                                                              8,598,400

2.  Cash (12% x 8,000,000)                                                                    960,000

            Interest income                                                                                               960,000

3.  Interest income                                                                               100,160

            Held to maturity securities                                                                               100,160

     Interest received                                                                                                     960,000

     Interest income (10% x 8,598,400)                                                                           859,840

     Premium amortization                                                                                           100,160