4)How much interest revenue did the fund earn in 2015? 2016? (Do not round inter

Question

4)How much interest revenue did the fund earn in 2015? 2016? (Do not round intermediate calculations.)

Prepare the all required journal entries at the end of 2015 and 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

On each December 31, you plan to deposit $2,000 in a savings account. The account will earn 9 percent annual interest, which will be added to the fund balance at year-end. The first deposit will be made December 31, 2014 (end of period). (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

Prepare the required journal entry on December 31, 2014. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.What will be the balance in the savings account at the end of the 10th year (i.e., after 10 deposits)?  

What is the interest earned on the 10 deposits?

4)How much interest revenue did the fund earn in 2015? 2016? (Do not round intermediate calculations.)

Prepare the all required journal entries at the end of 2015 and 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

On each December 31, you plan to deposit $2,000 in a savings account. The account will earn 9 percent annual interest, which will be added to the fund balance at year-end. The first deposit will be made December 31, 2014 (end of period). (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

Explanation / Answer

31.12.14 31.12.15 31.12.16 31.12.17 31.12.18 31.12.19 31.12.20 31.12.21 31.12.22 31.12.23 31.12.24 Total Opening Balance 2000 2180 4556.2 7146.258 9969.421 13046.67 16400.87 20056.95 24042.07 28385.86 33120.59 Closing Balance 2000 4180 6556.2 9146.258 11969.42 15046.67 18400.87 22056.95 26042.07 30385.86 0 Interest Earned 0 180 376.2 590.058 823.1632 1077.248 1354.2 1656.078 1985.125 2343.787 2734.727 13120.59 Note: 1. Every year deposit of $ 2000 is made into bank account upto 10 deposits              2. Interest earned is the difference of opening and closing balance Answers 1 Journal Entries 31.12.14 Savings Bank A/c       Dr. 2000        To Cash A/c 2000 (being cash deposited into savings bank account) 2 Balance in the savings bank account after 10th year will be $33120.59 as shown in the above table 3 Interest earned on th 10 deposits is $13120.59 as shown in the above table 4 Firm earned an interest of $ 180 in 2015 and $ 376.2 in 2016 5 Journal Entries in 2015 Interest accrued A/c    Dr.    180                  To interest A/c 180 (Being interst accrued for the year) Savings Bank A/c           Dr. 180 To interest accrued A/c 180 (Being interest transferred to savings bank account) Savings Bank A/c          Dr. 2000 To Cash A/c 2000 (Being deposit made into savings bank account) 6 Journal Entries in 2016 Interest accrued A/c    Dr.    376.2                  To interest A/c 376.2 (Being interst accrued for the year) Savings Bank A/c           Dr. 376.2 To interest accrued A/c 376.2 (Being interest transferred to savings bank account) Savings Bank A/c          Dr. 2000 To Cash A/c 2000 (Being deposit made into savings bank account)

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