Leach company invested 80000 in a certificate of deposit, Ask an Expert

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leach company invested $80,000 in a certificate of deposit onjune 1, 2008. the certificate had a 6% annual interest rate and aone year term to maturity.

a) What amount of interest revenue will leach recognize forthe year ending december 31, 2008?

b) Sow how the december 31,2008, adjusting entry to recognizethe accrued interest revenue affects the accounting equation.

c) What amount of cash will leach collect for interest revenuein 2008?

d) What is the amount of interest receivable as of december31,2008?

e) What amount of cash will leach collect for interest revenuein 2009, assuming it does not renew the CD?

f) What amount of interest revenue will reach recognize in2009, assuming it does not renew the CD?

g) What is the amount of interest receivable as of december31,2009, assuming it does not renew the CD?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797006

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