Assume that Deposits from other banks earn 1.5 %, Mortgaged Backed Securities earn 3.5 % and Home Mortgages earn 5.0 % (also assume that the bank received $ 15,000 in principal payments during the year, but made an additional $ 17,500 in loans). Assume further that the operating expenses where $ 7,500. Make the accounting entries to recognize this year’s transactions assuming that $ 2,500 is paid in dividends. 

Create the income statement and balance sheets for the bank at the end of the year.

Answer rating: 100% (QA)

The accounting entries for the banks transactions during the year are Recording interest income from ... View the full answer