International Finance and Accounting Handbook

21 • 32

20X4

Balance sheetAssets

Liabilities and Equity

__________________________________________

______________________________________

Cash

$

47.54

Cash

$

1,211.08

Equity

$

1,000.00

Subordinated Interest (AFS)

$

35.16

Subordinated Interest (AFS)

17.42

Unrealized gain

0.83

Interest income

12.38

Servicing Asset

1.57

Retained earnings

229.23

________________

_______________

$

1,230.06

$

1,230.06

________________

_______________

________________

_______________

Record accretion on Subordinated Interest and interest received from SPE

Income Statement

Cash

$

8.68

Servicing Expense

3.13

Income

Expense

__________________________________________

______________________________________

Servicing Income

$

8.68

Servicing Asset

3.13

Gain from securitization

$

—

Other

$

—

Interest Income on Subor

12.38

Servicing Expense

3.13

Amortize Servicing Asset and record the contractual servicing fee

Servicing Income

8.68

________________

_______________

$

21.05

$

3.13

________________

_______________

________________

_______________

Unrealized gain

$

2.47

# Subordinated Interest (AFS)

$2.47

Record the SFAS 115 AFS adjustment

20X5

Balance sheetAssets

Liabilities and Equity

__________________________________________

______________________________________

Cash

$

20.55

Cash

$

1,235.98

Equity

$

1,000.00

Subordinated Interest (AFS)

$

16.59

Subordinated Interest (AFS)

—

Unrealized gain

—

Interest income

3.97

Servicing Asset

—

Retained earnings

235.98

________________

_______________

$

1,235.98

$

1,235.98

________________

_______________

________________

_______________

Record accretion on Subordinated Interest and interest received from SPECash

$

4.35

Servicing Expense

1.57

Servicing Income

$

4.35

Servicing Asset

1.57

Amortize Servicing Asset and record the contractual servicing fee

Unrealized gain

$

0.83

Subordinated Interest (AFS)

0.83

Appendix A.

(Continued

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