Question

At the end of each year, you plan to deposit $3,100 in a savings account. The account will earn 7% annual interest, which will be added to the fund balance at year-end. The first deposit will be made at the end of Year 1. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

Required:

1. Prepare the required journal entry at the end of Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Answer:

Date	Account Title	Debit($)	Credit($)
1St year End	Saving Account	3,100
	Cash		3,100
	( To record the amount deposited in saving account at year end )