Valix Finacc vol 1 Problem 12-14

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 12-14

     Date               Interest received     Interest income     Discount amortization    Book value

01/01/2008                                                                                                                 3,757,015

12/31/2008                   400,000                  450,842                          50,842                  3,807,857

12/31/2009                   400,000                 456,943                          56,943                  3,864,800

12/31/2010                   400,000                  463,776                          63,776                  3,928,576

12/31/2011                   400,000                  471,424                          71,424                  4,000,000

   2008

Jan.   1    Held to maturity securities                                                 3,757,015

                        Cash                                                                                                  3,757,015

Dec. 31   Cash                                                                                     400,000

                        Interest income                                                                                   400,000

         31   Held to maturity securities                                                     50,842

                          Interest income                                                                                   50,842