Handling Interest

Feb 27, 2006 3 Replies

I have a GIC (Guaranteed Investment Certificate) that matured. The proceeds were directly deposited into my bank account - including the interest. I'm wondering how to handle this. I had the GIC down as an "Other Asset". It's easy enough to make a journal entry that debits the bank account and credits the GIC account. What I don't know is how to put in that interest. I don't think it's appropriate to put it in with the bank reconciliation, since the interest is not to do with the bank account per se. Also, the GIC matured mid-month and I want the interest entry to coincide with the maturity date.



TIA


Journal Entry, credit Interest Income.

Its easy enough to make a journal entry that debits the bank account , credits the GIC account. and credits the interest account.

Thanx to you both. I figured it had to be something that simple. :-)

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