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Annual sinking fund

Problem: Gordon Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5% annual interest. What amount will be in the sinking fund at the end of 10 years?

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Accounting Basics: Annual sinking fund

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Gordon Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5% annual interest. What amount will be in the sinking fund at the end

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Annual sinking fund

Reference No:- TGS01740244

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : What information does a ratio provide

Q : Determining the qualifications of home buyers

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Q : Payroll and the payment of the payroll

Q : Annual sinking fund

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Annual sinking fund

Reference No:- TGS01740244

Recent Questions Asked Accounting Basics

Q : What information does a ratio provide

Q : Determining the qualifications of home buyers

Q : Accounting-return on investment

Q : Payroll and the payment of the payroll

Q : Annual sinking fund

Q : Stock split or stock dividend

Q : Characteristic of corporation management

Q : Allowance for doubtful accounts-accounts receivable

Q : Cash expenditures

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