Draw a simple T-account (balance sheet) for First National Bank which – Smashing Essays

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Draw a simple T-account (balance sheet) for First National Bank which Write My Essay Service / By Essay Writer Get college assignment help at Smashing Essays Draw a simple T-account (balance sheet) for First National Bank which has $5,000 of deposits, a required reserve ratio of 10 percent, and excess reserves of $300.

First, a bank collects information about borrowers and lends to borrowers with a low chance of defaulting on their loans. Thus, a banks specialty is to rate its borrowers.

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The first section takes the balance from ABC’s bank statement and reconciles it to the cash balance in its accounts (the book balance). After adjusting it for items that may have been recorded on the books but not reached the bank yet because of timing differences-in this case a last-minute deposit and some checks that have been written but not yet cashed-ABC arrives at the actual cash balance. 70

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named Balance Sheet. A balance sheet reports what a business owns (assets), what it owes (liabilities) and what remains for the owners (equity) as of a certain date. This equation should remain in balance at all times because of double-entry accounting or bookkeeping. This can be further understood by the following illustrations.

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Read this essay on Accounting Misuse. Come browse our large digital warehouse of free sample essays.. how all investments that will be put toward the profitability of the company as well as the projected sales for the first year. An initial balance sheet has been prepared showing the company’s assets and liabilities for the first quarter.

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