Certifi cate of Deposit On May 31, 2010, Elmer Corp. purchased a 120-day, 9% certifi cate of deposit for

$50,000. The CD was redeemed on September 28, 2010. Identify and analyze the transactions and any adjustments on Elmer’s books to account for:

a. The purchase of the CD.

b. The accrual of interest adjustment for interest earned through June 30, the end of the company’s fi scal year.

c. The redemption of the CD.

Assume 360 days in a year.

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