Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet
Assets Liabilities and Owners' Equity
Reserves $150 Deposits $1,500
Loans $750 Debt $100
Securities $600 Capital (owners' equity) $100

Suppose a new customer adds $100 to his account at Midwestern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and the account.

This would also bring the leverage ratio from its initial value of to a new value of .

Which of the following is true of the capital requirement?
a. Its intended goal is to protect the interests of those who hold equity in the bank.
b. The amount of capital required depends on the type of assets the bank holds.
c. It specifies a minimum leverage ratio for all banks.

Alpine west, inc., operates a downhill ski area near lake tahoe, california. an all-day, adult ticket can be purchased for $55. adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from december 1 through april 30. the season pass is nontransferable, and the $450 price is nonrefundable. alpine expects its season pass holders to use their passes equally throughout the season. the company’s fiscal year ends on december 31. on november 6, 2009, jake lawson purchased a season ticket. required: 1. when should alpine west recognize revenue from the sale of its season passes? 2. prepare the appropriate journal entries that alpine would record on november 6 and december 31. 3. what will be included in the 2009 income statement and 2009 balance sheet related to the sale of the season pass to jake lawson?