You traded series EE bonds (on which you postponed reporting the interest) for $2,500 in series HH bonds and $223 in cash. You reported the $223 as taxable income on your tax return. At the time of the trade, the series EE bonds had accrued interest of $523 and a redemption value of $2,723.
https://www.irs.gov/publications/p17/ch07.html
You should keep a list showing sources and interest amounts received during the year. Also, keep the forms you receive showing your interest income (Forms 1099-INT, for example) as an important part of your records. Tax on unearned income of certain children.
https://www.irs.gov/publications/p17/ch07.html
If you received a Form 1099-INT that reflects accrued interest paid on a bond you bought between interest payment dates, include the full amount shown as interest on the Form 1099-INT on Schedule B (Form 1040A or 1040), Part I, line 1.
http://taxmap.ntis.gov/taxmap/pubs/p550-005.htm
If not, Form 8615 is not required and the child's income is taxed at his or her own tax rate. Some parents can choose to include the child's interest and dividends on the parent's return. If you can, use Form 8814, Parents' Election To Report Child's Interest and Dividends, for this purpose.
https://www.irs.gov/publications/p17/ch07.html
Then, below a subtotal of all interest income listed, enter Accrued Interest and the amount of accrued interest you paid to the seller. That amount is taxable to the seller, not you. Subtract that amount from the interest income subtotal. Enter the result on line 2 and also on line 8a of Form 1040A or 1040.
http://taxmap.ntis.gov/taxmap/pubs/p550-005.htm
If you receive a Form 1099-INT for interest income on deposits that were frozen at the end of 2015, see Frozen deposits under How To Report Interest Income in chapter 1 of Pub. 550, for information about reporting this interest income exclusion on your tax return.
https://www.irs.gov/publications/p17/ch07.html
Generally, you report all your taxable interest income on Form 1040, line 8a; Form 1040A, line 8a; or Form 1040EZ, line 2. You cannot use Form 1040EZ if your taxable interest income is more than $1,500. Instead, you must use Form 1040A or Form 1040.
http://taxmap.ntis.gov/taxmap/pubs/p550-005.htm
You received the bond from a decedent. The interest shown on your Form 1099-INT will not be reduced by any interest reported by the decedent before death, or on the decedent's final return, or by the estate on the estate's income tax return.
https://www.irs.gov/publications/p17/ch07.html
Accrued Interest Income. A business earns interest on its money deposits of 1,000 but does receive the amount into its bank account until after the month end. As the income has been earned but not received, it needs to be accrued for in the month end accounts. Accrued Interest Income Journal Entry.
http://www.double-entry-bookkeeping.com/sales/accrued-interest-income-journal-entry/
Interest income has been earned by the business but not received. As the amount is owed to the business it is recorded as a receivable called accrued interest income. The debit records the increase in the receivables in the balance sheet of the business. The credit to the income statement account represents the interest income earned by the business.
http://www.double-entry-bookkeeping.com/sales/accrued-interest-income-journal-entry/
accrued interest income
As the amount is owed to the business it is recorded as a receivable called accrued interest income.  As the amount is owed to the business it is recorded as a receivable called accrued interest income.