On January 1, 2014, Alan King decided to deposit $58,800 in a savings account that will provide funds four years later to send his son to college. The savings account will earn 8 percent, which will be added to the fund each year-end.
Required (show computations and round to the nearest dollar):
1. How much will be available in four years?
2. Give the journal entry that Alan should make on January 1, 2014.
3. What is the interest for the four years?
4. Give the journal entry that Alan should make on (a) December 31, 2014, and (b) December 31, 2015.