On May 31, 2015, Evergreen Corp. purchased a 120-day, 6% certificate of deposit for $60,000. The CD was redeemed on September 28, 2015. Identify the effects of the following transactions on the accounting equation for Evergreen's books:
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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The Answer of On May 31, 2015, Evergreen Corp. purchased a 120-day, 6% certificate of deposit for $60,000. The CD was redeemed on September 28, 2015. Identify the effects of the following transactions on the accounting equation for Evergreen's books:
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.