Question
Using T-accounts, show how each of the following would affect this banks balance sheet. You need only show the T-accounts, do not show the new
Using T-accounts, show how each of the following would affect this banks balance sheet. You need only show the T-accounts, do not show the new balance sheet, just the T-account for each transaction individually. On your T-account, be sure to show which items are changing, by how much, and in what direction (+ or -).
a) A customer of United makes a $1,400 cash withdrawal from her savings account.
b) United Bank decides to issue a $2,600 loan. State any assumptions you are making about how United finances the loan.
c) Show one other way in which United Bank can issue the $2,600 loan, under a different set of assumptions.
d) Because of a housing crises, United Bank suffers a $14,000 loss in loans.
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