On January 1, Alan King decided to deposit $59,300 in a savings account that will provide funds four years later to send his son to college. The savings account will earn 7% 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 Any interest earned will be added to the fund at year-end (rather than withdrawn).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)

1. How much will be available in four years?

2. Prepare the journal entry that Alan should make on January 1.