Chapter 1 Problem 9-14
2008
Jan. 1 Held to maturity securities 3,649,600
Cash 3,649,600
Dec. 31 Cash (8% x 4,000,000) 320,000
Interest income 320,000
31 Held to maturity securities 44,960
Interest income 44,960
Interest income (10% x 3,649,600) 364,960
Interest received 320,000 Amortization 44,960
2009
Dec. 31 Cash 320,000
Interest income 320,000
31 Held to maturity securities 49,456
Interest income 49,456
Interest income (10% x 3,694,560) 369,456
Interest received 320,000 Amortization 49,456
31 Available for sale securities 3,744,016
Held to maturity securities 3,744,016
31 Available for sale securities 455,984
Unrealized gain – AFS 455,984
Market value (4,000,000 x 105) 4,200,000
Book value 3,744,016
Unrealized gain 455,984
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