Suppose first main bank, second main bank, and third main bank all hold zero excess reserves. the required reserve ratio is 20%. suppose that the federal reserve buys a government bond worth $1,500,000 from jack, a client of first main bank. he immediately deposits the money into his checking account at first main bank. as a result of this transaction, the required reserves for first main bank will increase by $ and its excess reserves will increase by $ .

On june 3, teal company sold to chester company merchandise having a sale price of $2,600 with terms of 2/10, n/60, f.o.b. shipping point. an invoice totaling $91, terms n/30, was received by chester on june 8 from john booth transport service for the freight cost. on june 12, the company received a check for the balance due from chester company. prepare journal entries on the teal company books to record all the events noted above under each of the following bases. (1) sales and receivables are entered at gross selling price. (2) sales and receivables are entered at net of cash discounts.