Reference no: EM131717308

Question: For each of the transactions described here, which of at least two accounts on a bank's balance sheet (Report of Condition) would be affected by each transaction?

a. Sally Mayfield has just opened a time deposit in the amount of $6,000 and these funds are immediately loaned to Robert Jones to purchase a used car.

b. Arthur Blode deposits his payroll check for $1,000 in the bank and the bank invests
the funds in a government security.

c. The bank sells a new issue of common stock for $100,000 to investors living in its community and the proceeds of that sale are spent on the installation of new ATMs.

d. Jane Gavel withdraws her checking account balance of $2,500 from the bank and moves her deposit to a credit union; the bank employs the funds received from Mr. Alan James, who has just paid off his home equity loan, to provide Ms. Gavel with the funds she withdrew.

e. The bank purchases a bulldozer from Ace Manufacturing Company for $750,000 and leases it to Cespan Construction Company.

f. Signet National Bank makes a loan of reserves in the amount of $5 million to Quesan State Bank and the funds are returned the next day.

g. The bank declares its outstanding loan of $1 million to Deprina Corp. to be uncollectible.