1.Construct a balance sheet to mark the follow activities of Melvin Bank which opened in year 2000 on its balance sheet.

a. The founder of the bank, Melvin, raised $500 by selling shares of the banks stock to his friends.

b.Another friend of Melvin, Britt, deposited $1,000 in cash in his checking account in Melvin Bank.

c.To raise more funds, Melvin tried to attract more deposits. He successfully convinced Arthur on the phone to purchase a 1-year CD with the amount of $5,000.

d.By holding all the capital and deposits that mentioned above, Melvin decided to keep 10% of the deposits as reserves, spend 30% on purchasing 1-year T-bills, and lend the rest 60% to Harriet for her eSmells business.

e.One day during the year Melvin Bank met a minor liquidity crisis due to a large withdrawal from Britts checking account. Melvin had to borrow overnight funds from Mega bank, another commercial bank in town for $200. And during the day, Melvin kept the $200 as vault cash for Britt to withdraw.

f.Melvin Bank sold a standby letter of credit to Harriets eSmells business and earned $120 from this activity.