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At the end of each year, you plan to deposit $3,600 in a savings account. The account will earn 8 percent 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. Note: Use Excel for those parts involving the time value of money. Required: 1. Assume you follow GAAP. Prepare the required journal entry at the end of Year 1. 2. What will be the balance in the savings account at the end of the 10th year (ie., after 10 deposits)? 3. What is the interest earned on the 10 deposits? 4. How much interest revenue did the fund earn in the second year? In the third year? 5. Assume you follow GAAP. Prepare the all required journal entries at the end of the second and third years. Complete this question by entering your answers in the tabs below. Required 1 Required 2 and 3 Required 4 Required 5 How much interest revenue did the fund earn in the second year? In the third year? (Do not round intermediate calculations. Round your answers to nearest whole dollar.)

At the end of each year, you plan to deposit $3,600 in a savings account. The account will earn 8 percent 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. Note: Use Excel for those parts involving the time value of money. Required: 1. Assume you follow GAAP. Prepare the required journal entry at the end of Year 1. 2. What will be the balance in the savings account at the end of the 10th year (ie., after 10 deposits)? 3. What is the interest earned on the 10 deposits? 4. How much interest revenue did the fund earn in the second year? In the third year? 5. Assume you follow GAAP. Prepare the all required journal entries at the end of the second and third years. Complete this question by entering your answers in the tabs below. Required 1 Required 2 and 3 Required 4 Required 5 How much interest revenue did the fund earn in the second year? In the third year? (Do not round intermediate calculations. Round your answers to nearest whole dollar.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E9-24 (Algo) Computing Future Values: Recording Growth in a Savings Account with Equal Periodic Payments LO 9-7 At the end of each year, you plan to deposit $3,600 in a savings account. The account will earn 8 percent 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. Note: Use Excel for those parts involving the time value of money. Required: 1. Assume you follow GAAP. Prepare the required journal entry at the end of Year 1. 2. What will be the balance in the savings account at the end of the 10th year (ie., after 10 deposits)? 3. What is the interest earned on the 10 deposits? 4. How much interest revenue did the fund earn in the second year? In the third year? 5. Assume you follow GAAP. Prepare the all required journal entries at the end of the second and third years. Complete this question by entering your answers in the tabs below. Required 1 Required 2 and 3 Required 4 Required 5 How much interest revenue did the fund earn in the second year? In the third year? (Do not round intermediate calculations. Round your answers to nearest whole dollar.) Interest revenue Year 2 Year 3 < Required 2 and 3 Required 5 >
Transcribed Image Text:E9-24 (Algo) Computing Future Values: Recording Growth in a Savings Account with Equal Periodic Payments LO 9-7 At the end of each year, you plan to deposit $3,600 in a savings account. The account will earn 8 percent 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. Note: Use Excel for those parts involving the time value of money. Required: 1. Assume you follow GAAP. Prepare the required journal entry at the end of Year 1. 2. What will be the balance in the savings account at the end of the 10th year (ie., after 10 deposits)? 3. What is the interest earned on the 10 deposits? 4. How much interest revenue did the fund earn in the second year? In the third year? 5. Assume you follow GAAP. Prepare the all required journal entries at the end of the second and third years. Complete this question by entering your answers in the tabs below. Required 1 Required 2 and 3 Required 4 Required 5 How much interest revenue did the fund earn in the second year? In the third year? (Do not round intermediate calculations. Round your answers to nearest whole dollar.) Interest revenue Year 2 Year 3 < Required 2 and 3 Required 5 >
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