On January 1, 2014, Austin Auto Company decided to accumulate a fund to build an addition to

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On January 1, 2014, Austin Auto Company decided to accumulate a fund to build an addition to its plant.

The company will deposit $320,000 in the fund at each year-end, starting on December 31, 2014. The fund will earn 9 percent interest, which will be added to the balance at each year-end. The accounting period ends December 31.

Required:

1. What will be the balance in the fund immediately after the December 31, 2016, deposit?

2. Complete the following fund accumulationschedule:

On January 1, 2014, Austin Auto Company decided to accumulate

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Financial Accounting

ISBN: 978-0078025556

8th edition

Authors: Robert Libby, Patricia Libby, Daniel Short

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Question Posted: Jul 01, 2014 02:06 AM

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On January 1, 2014, Austin Auto Company decided to accumulate a fund to build an addition to

Question:

Date Cash Payment Interest Revenue Fund Incr Fund Balance 12/31/2014 12/31/2015 12/31/2016 Total

Step by Step Answer:

Req 1 320000 x 32781 1048992 Req 2 Date 12312014 12312015 1231...View the full answer

Financial Accounting

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