Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Accounting


Home >> Accounting Basics

Leach Company invested $80,000 in a certificate of deposit on June 1, 2013. The certificate had a 6 percent annual rate of interest and a one year term to maturity.

Required: 

a. What amount of interest revenue will Leach recognize for the year ending December 31, 2013? 
b. Show how the December 31, 2013, adjusting entry to recognize the accrued interest revenue affects the accounting equation.
c. What amount of cash will Leach collect for interest revenue in 2013? 
d. What is the amount of interest receivable as of December 31, 2013? 
e. What amount of cash will Leach collect for interest revenue in 2014, assuming it does not renew the CD? 
f. What amount of interest revenue will Leach recognize in 2014, assuming it does not renew the CD? 
g. What is the amount of interest receivable as of December 31, 2014, assuming it does not renew the CD? 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91592407
  • Price:- $15

Priced at Now at $15, Verified Solution

Have any Question?


Related Questions in Accounting Basics

Question - suppose the interest rate is 83 apr with monthly

Question - Suppose the interest rate is 8.3% APR with monthly compounding. What is the present value of an annuity that pays $ 115 every three months for six years if rounded to the nearest cent?

Question - x companys profit equation next year is expected

Question - X Company's profit equation next year is expected to be 0.47R-$12,900, where R is total revenue. Assuming a tax rate of 36%, what must next year's revenue be in order for X Company to earn after-tax profits of ...

Question - an individual received 70 capital interest in a

Question - An individual received 70% capital interest in a general partnership by contributing investment land purchased 10 years ago for 40000 values 60000 and a personal non business truck purchased 9 months ago for 1 ...

Question - sunshine company purchased equipment for 100000

Question - Sunshine Company purchased equipment for $100,000 in 2012. The machinery originally had an estimated life of 8 years and a salvage value of $10,000. Sunshine used the straight-line depreciation method. In 2016 ...

Question - monty corporation was organized on january 1

Question - Monty Corporation was organized on January 1, 2020. It is authorized to issue 14,000 shares of 8%, $100 par value preferred stock, and 550,000 shares of no-par common stock with a stated value of $3 per share. ...

Question - as a senior accountant you had just prepared and

Question - As a senior Accountant you had just prepared and posted the journal entry that closed the revenue accounts to the income summary Account. You then noticed that your bookkeeper made a tragic error in recording ...

Question - on december 31 2016 alpha company invested 10000

Question - On December 31, 2016, Alpha Company invested $10,000 in 2 years, certificate with a 4% annual interest rate with semi-annual compounding. Use this information to determine the maturity value of the certificate ...

Question - x company wants to estimate overhead costs in

Question - X Company wants to estimate overhead costs in March, when production is expected to be 1,400 units. To determine the parameters of its overhead cost function, it used account analysis with the January cost inf ...

Question review the following case studyfasb asc 320

Question: Review the following case study: FASB ASC 320 requires companies to assign their portfolio of investment securities into: • Trading securities. • Securities available for sale. • Held-to-maturity securities. Wr ...

Qestion - a racing bike is listed for 129344 less 18 9

Question - A racing bike is listed for $1293.44 less 18 %, 9 %, and 3%. a. What is the net price? b. What is the total amount of discount that was allowed? c. What is the exact single rate of discount that was allowed?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved