Question

1. the balance brought forward to check stub no. 112 is $7,890.00.

2. a deposit of $2,350.00 is made on november 5 of the current year.
3. notice is received from the bank of a dishonored check for $400.00, plus fee, $25.00; total, $425.00.
4. check no. 112 for $631.00 is issued to fort myers supply on november 5 of the current year.
5. enter student's signature in cell where you would sign the check.

Answer 1

Banks lending money increase the money supply. A loan from Singleton Bank to Hank's Auto Supply and a deposit by Jack's into Second National both contribute to this increase. The bank's balance sheet and the reserve ratio play crucial roles in this process.

Step-by-step explanation:

The process of lending by banks is a primary way in which the money supply is increased within an economy. When Singleton Bank lends $9 million to Hank's Auto Supply, it records this loan on its balance sheet, creating an increase in money supply. Hank's Auto Supply does not, however, receive the loan in cash but in the form of a cashier's check, which it then deposits into its account with First National. This deposit increases both the deposits and reserves of First National by the same amount. Following required reserve ratios, such as the mandated 10% reserves, banks can loan out the remaining amount, further increasing the money supply with each subsequent loan.

Similarly, if Jack's deposits the loan into its account at Second National, this also increases the money supply by the loan amount. In this case, an $8.1 million increase in money supply is mentioned, possibly due to a series of transactions and loans that lead to a net increase in the money held in checking accounts.

Answer 2

New Balance: $9,815.00 - $631.00 = $9,184.00

Here's a summary of the transactions and the updated balance:

Transactions:

1. Balance brought forward: $7,890.00

2. Deposit made: +$2,350.00

3. Dishonored check: -$425.00

4. Check issued to Fort Myers Supply: -$631.00

Updated balance:

$7,890.00 + $2,350.00 - $425.00 - $631.00 = $9,184.00

Check stub instructions:

1. Date: November 5, current year

2. Check number: 112

3. Payee: Fort Myers Supply

4. Amount: $631.00

5. Balance brought forward: $7,890.00

6. Deposit: $2,350.00

7. Dishonored check: -$425.00

8. Check issued: -$631.00

9. Balance: $9,184.00

10. Signature: (Student's signature)

Important:

- Remember to sign the check in the designated cell to authorize the payment.

- Keep a record of all transactions for your checkbook register and reconciliation.

It seems like you've provided a list of financial transactions related to a check stub (check register). I can help you analyze and record these transactions. Let's go step by step:

Check Stub No. 112 - Balance Brought Forward:

Previous Balance: $7,890.00

Transaction 2 - Deposit on November 5:

Deposit: +$2,350.00

New Balance: $7,890.00 + $2,350.00 = $10,240.00

Transaction 3 - Dishonored Check Notice:

Dishonored Check: -$425.00

New Balance: $10,240.00 - $425.00 = $9,815.00

Transaction 4 - Check No. 112 Issued to Fort Myers Supply:

Check Issued: -$631.00

New Balance: $9,815.00 - $631.00 = $9,184.00