Jan 1,2012

Loan Recievable

4,000,000
Cash

Cash

342,100
Unearned income

Unearned interest income

Cash
Pv of principal interest
( 4,000,000 x 0.7118 )
Pv of interest
( 400,000 x 2.4018 )

Date

2,847,200
960,720
3,807,920

Interest Received

1/1/2012
12/31/2012
12/31/2013
12/31/2014

150,000

Interest Income

400,000
400,000
400,000

456,950
463,784
471,345

Amortization
56,950
63,784
71,345

Dec 31,2012
Cash

400,000
Interest Income

Unearned interest income

Interest income

56,950

Dec 31,2013
Cash

400,000
Interest income

Unearned interest income

Interest income

63,784

Dec 31,2014
Cash

400,000
Interest income

Unearned interest income

Interest income

71,345

Cash

4,000,000
Loan Receivable

4,000,000

342,100

###

Carrying amount
3,807,920
3,864,870
3,928,655
4,000,000

400,000

56,950

400,000

63,784

400,000

71,345

4,000,000