On each December 31, you plan to transfer $2,000 from your chequing 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, 2017 (at the end of the period).

Required:

(Show computations and round your answers to the nearest dollar.)

1. Give the required journal entry on December 31, 2017.

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

3. What will be the total amount of interest earned on the ten deposits?

4. How much interest revenue will the fund earn in 2018? In 2019?

5. Give all journal entries that will be required at the end of 2018 and 2019.