Does anyone know how to process a GIC redemption?
Hello WayneLau, sounds like it would be a journal entry where you credit the GIC account for sale/use/redemption and debit the bank account for funds cashed. Double check with your teacher whether the below is applicable in the US but perhaps these two forum discussions can help:- GIC investment accounts"A GIC is a liquid investment, like cash or the money in your bank account, so it is considered to be a short term or "current" asset. "- How to post GIC transaction in GL
"To record the cashing in of the GIC, with interest, the journal entry would be a Debit to Bank for the total amount, a Credit to the GIC account for the amount of the GIC that was cashed in, and a Credit to the Interest Income account."