Answer:
short-term securities 1,000,000 debit
cash 1,000,000 credit
---to reocrd purchase---
cash 1,025,000 debit
interest revenue 25,000 credit
short-term securities 1,000,000 credit
-- to record collection---
Explanation:
calculus of interest:
principal x rate x time = interest
Is important to notice we must express rate and time in the same metric, so time will be express a a portion of the year instead of 90 days:
1,000,000 x 10% x 90/360 = 25,000