Melinda Almazan, an angel investor. decided to invest P1,200,00 certificate of deposit on April 1. 2019, The certificate carried an 8% annual rate of interest and a 1-year term to maturity, Interest will be withdrawn monthly (disregard tax effects). al Required: 1. What amount of income will be recognized for the year ending Dec. 31, 2019? 2. What is the effect of the adjusting entry on the accounting equation? 3. What amount of cash will be collected for interest revenue in 2019?
Melinda Almazan, an angel investor. decided to invest P1,200,00 certificate of deposit on April 1. 2019, The certificate carried an 8% annual rate of interest and a 1-year term to maturity, Interest will be withdrawn monthly (disregard tax effects). al Required: 1. What amount of income will be recognized for the year ending Dec. 31, 2019? 2. What is the effect of the adjusting entry on the accounting equation? 3. What amount of cash will be collected for interest revenue in 2019?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 5MCQ: Dallas Company loaned to Ewing Company on December 1, 2019. Ewing will pay Dallas $720 of interest...
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