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Texas Company invested $90,000 in a certificate of deposit on August 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 Texas recognize for the year ending December 31, 2013? b. Show how the December 31, 2013, adjusting entries to recognize the accrued interest revenue affect the accounting equation.c. What amount of cash will Texas 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 Texas collect for interest revenue in 2014, assuming it does not renew the CD? f. What amount of interest revenue will Texas 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?
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