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For each of the transactions described here, which of at least two accounts on a banks balance sheet (Report of Condition) would be affected by
For each of the transactions described here, which of at least two accounts on a banks balance sheet (Report of Condition) would be affected by each transaction?
- 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.
- Arthur Blode deposits his payroll check for $1,000 in the bank, and the bank invests the funds in a government security.
- 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.
- 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.
- The bank purchases a bulldozer from Ace Manufacturing Company for $750,000 and leases it to Cespan Construction Company.
- 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.
- The bank declares its outstanding loan of $1 million to Deprina Corp. to be uncollectible.
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