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Your Business Purchased a Certificate of Deposit on April 1

Question 45

Multiple Choice

Your business purchased a certificate of deposit on April 1 that will pay $90 interest three months from that date. On April 30, which of the following adjusting journal entries would be made?


A) Debit Interest Receivable for $90; credit Interest Revenue for $90.
B) Debit Interest Revenue for $60; credit Interest Receivable for $60.
C) Debit Interest Receivable for $30; credit Interest Revenue for $30.
D) Debit Interest Revenue for $30; credit Interest Receivable for $60.

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