Reference no: EM131959240
On January 1, Alan King decided to deposit $60,700 in a savings account that will provide funds four years later to send his son to college. The savings account will earn 8% annually.
Any interest earned will be added to the fund at year-end (rather than withdrawn). (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
Required:
1. How much will be available in four years? (Round your answer to nearest whole dollar.)
2. Prepare the journal entry that Alan should make on January 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3. What is the total interest for the four years? (Round your answer to nearest whole dollar.)
4. Prepare the journal entry that Alan should make on December 31 of the first year and December 31 of the second year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answer to nearest whole dollar.)
Explain the design of the adjacentrooms rectangular array
: In your own words, explain the design of the adjacentRooms rectangular array. List each method header and briefly describe what that method does.
|
By how much has the dollar appreciated or depreciated
: On January 1, 2007, the Mexican Peso/U.S. exchange rate was Ps 10.6250 = $1. By January 1, 2017, the exchange rate stood at Ps 19.1476 = $1.
|
How much will you pay in? interest
: How much will you pay in? interest, and how much will you pay in? principal, during the first? month, second? month, and first? year?
|
What are their total liabilities
: If their revolving credit and unpaid bills total $2,200, what are their total liabilities?
|
How much will be available in four years
: On January 1, Alan King decided to deposit $60,700 in a savings account that will provide funds four years later to send his son to college.
|
Journalize the first interest payment
: Journalize the first interest payment and the amortization of the related bond discount.
|
Prepare the journal entry to record the issuance of the bond
: On January 1, a company issued 10-year, 10% bonds payable with a par value of $500,000, and received $442, 647 in cash proceeds.
|
What might a large value for this ration imply
: How long on average did it take the company to pay off its suppliers during the year? What might a large value for this ration imply?
|
Prepare the journal entry to record the issuance
: Assume the bonds are issued at 103 instead. Prepare the journal entry to record the issuance of the bonds.
|