yoshie

[yoshie]

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@‌DollarsToDonuts

“Income Statement
Interest Income of $12,000 (5% x $240,000)
Realized loss of $2,000 via amortization of premium, which is equal to the difference between the coupon received ($14,000) and interest income ($12,000)

I assume we are saying the same thing, but can you confirm…

Double entry transactions:

Cash Account increase $14K
Interest Income Account Increase 14K

Book Value of Debt Account – Amortization of Debt $2K
Interest Income Account – Decrease 2K

So you have a net interest income of 12K.

Is this correct?

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