On January 1, Alan King decided to deposit $59,100 in a savings account that will provide...
On January 1, Alan King decided to deposit $59,100 in a savings
account that will provide funds four years later to send his son to
college. The savings account will earn 9% annually. Any interest
earned will be added to the fund at year-end (rather than
withdrawn). (FV of $1, PV of $1, FVA of $1, and PVA of $1)
(Use the appropriate factor(s) from the tables
provided.)
Required:
1. How much will be available in four years? (Round your answer to nearest whole dollar.)
2. Prepare the journal entry that Alan should make on January 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3. What is the total interest for the four years? (Round your answer to nearest whole dollar.)
4. Prepare the journal entry that Alan should make on December 31 of the first year and December 31 of the second year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answer to nearest whole dollar.)
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On January 1, Alan King decided to deposit $59,100 in a savings
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