USA Interest Income

[Numbers4me]

I need to set up a new gl account for interest income from a CD. Should this be set up as a B/S acct and a debit?

 

[BIG E]

The CD should already be set up as a Current Asset.
An income account should be set up for the interest earned when posted to the CD.

 

[Numbers4me]

Thank you, BIG E! So, if I'm understanding correctly, there should be two accounts, is that right? An asset account that is already set up for the CD, and then another account to post the interest earned against.

 

[BIG E]

That is correct