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The Dietrich Company purchases a short term investment for $250,000 cash on April 1, 2017....

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Accounting

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The Dietrich Company purchases a short term investment for $250,000 cash on April 1, 2017. It is a six-month investment with a 2.0% annual interest rate. Dietrich files financial reports quarterly, using the calendar year. Show the journal entries on the dates below, choosing from the following accounts: Cash, STI for Short-term Investment, Il for Interest Income, IR for Interest Receivable, IP for Interest Payable, IE for Interest Expense. Begin each journal entry line by entering Dr for Debit or Cr for Credit. Formatting will be very important for Blackboard grading. So be sure to: Enter Debits before Credits . If there are multiple Debit or Credit lines, enter them in the alphabetical order of the accounts affected. For example, if both Interest Expense (IE) and Interest Receivable (IR) are credited, enter the credit to IE before the credit to IR. Formatting Example: Dr Cash 100,000 1. Dietrich's purchase of the investment on April 1. 2. Dietrich's adjusting entry, if any, on June 30. If no entry is needed, enter NA in each box. 3. C. Dietrich's journal entry when the investment matures on September 30

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