Wagner's Bookstore Acquires a 6%,$12,000 Certificate of Deposit on September

question 40

Multiple Choice

Wagner's Bookstore acquires a 6%,$12,000 certificate of deposit on September 1.The term of the CD is six months.At that time,all principal and accrued interest will be paid in cash.Indicate the effect on the financial statements at December 31.

• A)Interest Receivable increases $240,Interest Revenue increases $240
• B)Interest Receivable increases $360,Interest Revenue increases $360
• C)Interest Receivable increases $480,Interest Revenue increases $480
• D)Interest Receivable increases $720,Interest Revenue increases $720

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Definitions:

Standard Type 30

Often refers to a size or specification for parts such as brake chambers in commercial vehicles, indicating a common dimension or capacity.

Clamp-type Brake Chamber

A component of air brake systems commonly found on trucks and buses, using air pressure to apply the brakes.

U-joint Cross

A component of a universal joint used in the drivelines of vehicles, allowing for the transmission of torque at an angle between shafts.

Trunnion Seals

Sealing elements used in trunnions (pivot points) to prevent leakage of lubricants and the ingress of contaminants.