E2.3. The Financial Statements for a Bank Savings Account (Medium) You received the following statement for 2009 for your savings account at a bank. Cash balances in the account eam interest at a 5 percent rate per annum. Balance, January 1, 2009 Earnings at an interest rate of 5% pa. Withdrawals Balance, December 31, 2009 $100 (5 100 This statement is effectively a statement of owner's equity for the account. It shows your starting balance, adds your earnings for the year, and subtracts your dividend (the withdrawal), to yield a closing balance.

a. Prepare an income statement, balance sheet, and cash flow statement for this account for 2009.

b. Rather than withdrawing $5 from the account, suppose you left it in the account. What would your financial statements for 2009 then look like? If, before the end of the year, you instructed your bank to invest the earnings of $5 in a mutual fund (and there were no withdrawals), what would the final financial statements look like?