using the T-accounts of the first national bank and the second national bank, describe what happens when Jane Brown writes a che

Question

Juliette [100K]

3 years ago

13

using the T-accounts of the first national bank and the second national bank, describe what happens when Jane Brown writes a che

ck for $55 on her account

Business

1 answer:

zhuklara [117] · Answer 1 · 2022-09-03T09:56:45+03:00

Answer:

Please refer to the attached.

Before Jane Brown wrote the check, her account was $55 at First National Bank which is reflected by the checkable deposit of $55 which the bank will keep in reserve as an asset.

Joe Green has not received the money so his account at Second National will show $0 balances.

After the cheque has been written and deposited, Jane Brown's chekcable deposits at First national will become $0 as well as the reserves.

Joe Green on the other hand, having gained the $55 and deposited it will see his checkable deposits rise to $55 which the bank will keep in reserve as an asset.