Reference no: EM133254060

Yellow Bank borrows $25,000 through a loan with Purple Bank (transaction A) and issues $10,000 bonds to Dr Orange (transaction B). Dr Orange is a rich widow who paid for the Yellow Bank bonds with the money of the rents she earned from her property investments in Sydney, money that was sitting in her transactional bank account in Purple Bank. Yellow Bank buys $400,000 shares just issued by Winnie Company, a honey producer that needs funding to renew its stock of beehives (transaction C). Winnie Company has its transactional bank account in Yellow Bank. a) Draw the changes in Yellow Bank's balance sheet and in Purple Bank's balance sheets resulting from transactions A, B and C. [Clearly indicate the name of the item affected in the balance, the change in the value and between brackets the letter of the transaction] No explanation is required. Only draw the two balance sheets.