Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions.

Assets Liabilities + Net Worth
Reserves $120,000 Checkable Deposits $300,000
Loans 140,000 Stock Shares 200,000
Securities 40,000
Property 200,000

After the deposit of $10 billion of new currency, the maximum amount by which this commercial banking system can expand the supply of money by lending is:

a. $120,000 billion.
b. $300,000 billion.
c. $600,000 billion.
d. $900,000 billion.

In march 2018, the phillips tool company signed two purchase commitments. the first commitment requires phillips to purchase inventory for $110,000 by june 15, 2018. the second commitment requires the company to purchase inventory for $160,000 by august 20, 2018. the company's fiscal year-end is june 30. phillips uses a periodic inventory system. the first commitment is exercised on june 15, 2018, when the market price of the inventory purchased was $90,000. the second commitment was exercised on august 20, 2018, when the market price of the inventory purchased was $125,000. required: prepare the journal entries required on june 15, june 30, and august 20, 2018, to account for the two purchase commitments. assume that the market price of the inventory related to the outstanding purchase commitment was $144,000 at june 30. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)