Banks rely heavily upon customers' deposits as a source of funds. Demand deposits normally pay interest to the customer, who is entitled to withdraw at any time without prior notice to the bank. Checking and NOW (negotiable order of withdrawal) accounts are the most common form of demand deposits for banks.
Assume that Kennon Storage has a checking account at Livingston Savings Bank.
What type of account (asset, liability, owner's equity, revenue, expense, drawing) does the account balance of $15,600 represent from the viewpoint of
(a) Kennon Storage
(b) Livingston Savings Bank?