Question

Using the​ T-accounts of the First National Bank and the Second National​ Bank, describe what happens when Jane Brown writes a check for ​$75 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. ​T-account for the First National​ Bank:

Answer 1

Answer:Using the double entry principle ,input the transaction considering the positive and negative reflection and using the reserves and checkable account

Explanation:T-account for the First National​ Bank:

Assets reflect negative 75in reserves; liabilities reflect negative 75 in checkable deposits.

T-account for the Second National​ Bank:

Assets reflect positive 75in reserves; liabilities reflect positive 75 in checkable deposits