Using the T-accounts of the First National Bank and the Second National Bank given in this chapter, describe what happens when Jane Brown writes a check for $90 on her account at the First National Bank to pay her friend Joe Green, who in turn deposits the check in his account at the Second National Bank.

B1 - Jane receives her $500 scholarship on her transaction bank account (transaction 1). She pays her $250 rent with a cheque (transaction 2) and a $100 food bill with her debit card (transaction 3).  She transfers $50 to her saving account (transaction 4). For each transaction,  below the balance sheet, (a)    Draw one balance sheet in which you represent the changes in Jane's balance sheet resulting from each transaction. [Mention precisely which items in the balance sheet are affected; represent the changes with arrows going up or down followed by the appropriate number]. Give a written explanation why the balance sheet is affected that way. [Be careful to not simply repeat  in words what can be already seen in the balance sheet. The explanation needs to add value. ] (5 marks)(b)    Calculate Jane's surplus and describe the form(s) that her surplus currently takes. [Provide clear definitions before applying numbers.]                 (2 marks)Hand write the answers on a blank piece of paper with your full name and student number at the top of the page. Take a picture or several pictures if needed and convert it or them into a pdf file. Upload the pdf file into this question. Only one pdf file can be uploaded so merge your pictures if needed. Carefully keep your hand-written answers and your original pictures for future reference.

When a check is presented to a bank for payment and the amount is deducted from the payer's account, the check is said to have the bank.

Jane receives her $500 scholarship on her transaction bank account (transaction 1). She pays her $250 rent with a cheque (transaction 2) and a $100 food bill with her debit card (transaction 3).  She transfers $50 to her saving account (transaction 4). For each transaction,  below the balance sheet, (a)    Draw one balance sheet in which you represent the changes in Jane's balance sheet resulting from each transaction. [Mention precisely which items in the balance sheet are affected; represent the changes with arrows going up or down followed by the appropriate number]. Give a written explanation why the balance sheet is affected that way. [Be careful to not simply repeat  in words what can be already seen in the balance sheet. The explanation needs to add value. ] (5 marks)(b)    Calculate Jane's surplus and describe the form(s) that her surplus currently takes. [Provide clear definitions before applying numbers.]                 (2 marks)Hand write the answers on a blank piece of paper with your full name and student number at the top of the page. Take a picture or several pictures if needed and convert it or them into a pdf file. Upload the pdf file into this question. Only one pdf file can be uploaded so merge your pictures if needed. Carefully keep your hand-written answers and your original pictures for future reference.

Jane receives her $500 scholarship on her transaction bank account (transaction 1). She pays her $250 rent with a cheque (transaction 2) and a $100 food bill with her debit card (transaction 3). She transfers $50 to her saving account (transaction 4). For each transaction, below the balance sheet, (a) Draw one balance sheet in which you represent the changes in Jane's balance sheet resulting from each transaction. [Mention precisely which items in the balance sheet are affected; represent the changes with arrows going up or down followed by the appropriate number]. Give a written explanation why the balance sheet is affected that way. [Be careful to not simply repeat in words what can be already seen in the balance sheet. The explanation needs to add value. ] (5 marks) (b) Calculate Jane's surplus and describe the form(s) that her surplus currently takes. [Provide clear definitions before applying numbers

Suppose the Fed sells $25,000 in bonds to Luna Corporation. Luna pays for the bonds with a check drawn on Fifth Third Bank, which the Fed deposits. Which of the following happen when Fifth Third Bank pays the check?Select the correct answer below:Fifth Third Bank's reserves in the Fed are increased by $25,000 and the reserves in the entire banking system are increased by $25,000 .Fifth Third Bank's reserves in the Fed are increased by $25,000 and the reserves in the entire banking system are decreased by $25,000 .Fifth Third Bank's reserves in the Fed are decreased by $25,000 and the reserves in the entire banking system are increased by $25,000 .Fifth Third Bank's reserves in the Fed are decreased by $25,000 and the reserves in the entire banking system are decreased by $25,000 .