ACCOUNT NUMBER 2013, PREMIUM ON SECURITIES - 10424
(Revised: 05/1987)
Normal Balance: Debit
Purpose: This account shows the unamortized premium on securities purchased at more than par value. Premium is amortized during the expected holding period or the securities using the "interest method" which yields an equal periodic rate of interest.
Subsidiaries: Investments Ledger
Normal Entries:
|
Entry Number |
Debits |
Entry Number |
Credits |
|
33. |
Investment securities are purchased |
34. |
Investment securities mature or are sold. |
|
|
|
35. |
Interest is received on investment securities. |
|
|
|
A-5 |
Interest is accured on investments. |
Revisions
No Revisions for this item.
Search Entire Manual
Print Entire SAM Manual
Please bear with us, generating the entire SAM for printing will take approximately two minutes.