on jan 1, 2006 alan king decided to deposing $58,800 in asavings accout that wil
ID: 2458135 • Letter: O
Question
on jan 1, 2006 alan king decided to deposing $58,800 in asavings accout that will provide funds four years later to send hisson to college. the savings account will earn 8%, which will beadded to the fund each year end a) how much will be available in four years? b) give journal entry that alan should make on jan. 1,2006 c) what is the interest for the four years? d) give the journal entry that alan should make on a0 dec.31,2006 and b) dec 31, 2007 on jan 1, 2006 alan king decided to deposing $58,800 in asavings accout that will provide funds four years later to send hisson to college. the savings account will earn 8%, which will beadded to the fund each year end a) how much will be available in four years? b) give journal entry that alan should make on jan. 1,2006 c) what is the interest for the four years? d) give the journal entry that alan should make on a0 dec.31,2006 and b) dec 31, 2007Explanation / Answer
1-Jan-06
31-Dec-06
31-Dec-07
a. $80,000.00 amount is available after fouryears. FV = FV4,8%X $58,800 = 1.3605 X$58800 =$79997.4 OR$80,000 b.1-Jan-06
Bank $58,800 Cash $58,800 c. Interest amount = Future value - present value for the four years = $80000 -$58800 = $21,200 d. alan can put adjusting entries for interest revenuedue but not received.31-Dec-06
Unearned interest revenue $4,704 Interest revenue $4,704 ($58800 X 8%)31-Dec-07
Unearned interest revenue $5,080 Interest revenue $5,080 ({$58800+$4704} X8%)Related Questions
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