Certificate of Deposit On May 31, 2010, Elmer Corp. purchased a 120-day, 9% certificate of deposit for

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Certificate of Deposit On May 31, 2010, Elmer Corp. purchased a 120-day, 9% certificate of deposit for $50,000. The CD was redeemed on September 28, 2010. Identify and analyze the transactions and any adjustments on Elmer’s books to account for:

a. The purchase of the CD.

b. The accrual of interest adjustment for interest earned through June 30, the end of the company’s fiscal year.

c. The redemption of the CD.

Assume 360 days in a year.

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Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1133161646

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Authors: Gary A. Porter, Curtis L. Norton

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Question Posted: Jan 12, 2012 02:01 AM

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Certificate of Deposit On May 31, 2010, Elmer Corp. purchased a 120-day, 9% certificate of deposit for

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a The effect of the purchase of the CD on May 31 can ...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

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