Question: For each of the following transactions which items on a

For each of the following transactions, which items on a bank’s statement of income and expenses (Report of Income) would be affected?
a. Office supplies are purchased so the bank will have enough deposit slips and other necessary forms for customer and employee use next week.
b. The bank sets aside funds to be contributed through its monthly payroll to the employee pension plan in the name of all its eligible employees.
c. The bank posts the amount of interest earned on the savings account of one of its customers.
d. Management expects that among a series of real estate loans recently granted the default rate will probably be close to 3 percent.
e. Mr. and Mrs. Harold Jones just purchased a safety deposit box to hold their stock certificates and wills.
f. The bank collects $1 million in interest payments from loans it made earlier this year to Intel Composition Corp.
g. Hal Jones’s checking account is charged $30 for two of Hal’s checks that were returned for insufficient funds.
h. The bank earns $5 million in interest on the government securities it has held since the middle of last year.
i. The bank has to pay its $5,000 monthly utility bill today to the local electric company.
j. A sale of government securities has just netted the bank a $290,000 capital gain (net of taxes).

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  • CreatedOctober 31, 2014
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