Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 24

Recording Growth in a Savings Account with Equal Periodic Payments
On each December 31, you plan to transfer $2,000 from your checking account into a savings account. The savings account wilt 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, 2013 (at the end of the period)
Required (show computations and Found to the nearest dollar):
1. Give the required journal entry on December 31, 2013.
2. What will be the balance in the savings account at the end of the 10th year (i.e., 10 deposits)
3. What is the total amount of interest earned on the 10 deposits
4. How much interest revenue did the fund earn in 2014 2015
5. Give all required journal entries at the end of 2014 and 2015.