Wagner's Bookstore acquires a 6% $12,000 certificate of deposit on September 1 . The term of the CD is six months. At that time, all principal and accrued interest will be paid in cash. Indicate the effect on the financial statements at December 31
a. Interest Receivable increases $240, Interest Revenue increases $240
b. Interest Receivable increases $360, Interest Revenue increases $360
c. Interest Receivable increases $480, Interest Revenue increases $480
d. Interest Receivable increases $720, Interest Revenue increases $720
a
You might also like to view...
Which of the following is true regarding a special warranty deed?
A) The grantor is making additional warranties beyond those given in a warranty deed. B) The grantor retains an interest in the ownership. C) The grantor is warranting that no encumbrances exist against the property. D) The grantor's warranties are limited to the time the grantor owned the property.
Which of the following is true about "coffee culture" in England?
A) Starbucks has been unsuccessful in its attempt to change the Brits' preference for tea. B) American entrepreneurs found success in England with the Seattle Coffee Company which Starbucks later acquired. C) Starbucks succeeded in England only after changing the company's name to Seattle Coffee Company. D) Starbucks-style coffee shops have been a flop because tea culture is too deeply engrained. E) Starbucks has been successful in England since it started selling beer.