A Bank’s Debits and Credits The Third State Bank loans a customer $5,000 in exchange for a… 1 answer below »

A Bank’s Debits and Credits

The Third State Bank loans a customer $5,000 in exchange for a promissory note.

Required

1. What is the effect of this transaction on the bank’s accounting equation?

2. Prepare the journal entry to record this transaction in the bank’s records.