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Fill in the blank: The first entry in the journal is ____.

A. The first deposit of the transactions
B. The first disbursement of the transaction
C. The opening balance
D. The interest sweep

User Tamira
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1 Answer

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Final answer:

The first entry in the journal for Singleton Bank would be the opening balance, reflecting the $10 million in deposits it holds, assuming no other financial activities have yet occurred. The correct option is: C. The opening balance.

Step-by-step explanation:

The first entry in the journal is C. the opening balance. In the context of Singleton Bank which has $10 million in deposits, the T-account balance sheet would reflect this amount as the opening balance when Singleton Bank holds all the deposits in its vaults and before any transactions, like loans or interest income, are recorded. Since in this example Singleton Bank is not earning any interest income from these loans and is unable to pay its depositors interest, this opening balance would remain unchanged until it begins to engage in financial activities that alter its balance sheet.

User Triston
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