[GNC] Certificate of Deposit Early Withdrawal Penalty Account Entry

[Stephen]

I had a CD that I closed before it matured. The bank applied a penalty 
of 90 days interest at the CD rate. In fact the total penalty was 
figured as the sum of principal penalty of $1,366.62 and penalty amount 
paid from interest earned for the period of a partial month of $162.89 
for a total penalty of $1,529.51. The statement clearly shows a payment 
of +$162.89 and a penalty of -$162.89 and a penalty amount from 
principal of the $1,366.62.  The interest earned and penalized is a net 
$0 so I could just book the $1,366.62 as a charge to the CD account and 
as as an charge to an early withdrawal penalty account to obtain the 
closing balance on the account. But it seems to me that I should be 
booking at least 3 splits to show the interest earned account and 
interest earned penalized account and the rest of the penalty as a 
charge to the CD account but the numbers produce orphans or imbalances. 
I'm treating all entries as income items so interest earned, interest 
penalized, and a principal penalty. They are multiple entries and not 
multiple splits in the CD income account. Is this the correct way to 
book this? Some guidance would be appreciated. Thanks in advance.