On each December 31, you plan to transfer $2,000 from your checking account into a savings account.The savings account will earn 9 percent annual interest, which will be added to the savings account balance at each year-end. The first deposit will be made December 31, 2010
Requirement 1:
Give the required journal entry on December 31, 2010.
Requirement 2:
What will be the balance in the savings account at the end of the 10th year (i.e., 10 deposits)?
Requirement 3:
What is the total amount of interest earned on the 10 deposits? (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
Total amount of interest $
Requirement 4:
How much interest revenue did the fund earn in 2011? 2012? (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
Interest revenue
2011 $
2012 $
Requirement 5:
Give all required journal entries at the end of 2011 and 2012. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
1 answer