Bank of Marienfield started its first day of operations with $150 million in capital. It received a total of $100 million in checkable deposits, and borrowed $50 million from Bank of Empira. The bank makes a $150 million commercial loan and invests $120 million in shares and $20 million in Treasury bonds. Assume required reserves are 10% of deposits and all remaining assets (if any) are kept as excess reserves, write the balance sheet of Bank of Marienfield.

Bank of Marienfield started its first day of operations with $150 million in capital. It received a total of $100 million in checkable deposits, and borrowed $50 million from Bank of Empira. The bank makes a $150 million commercial loan and invests $120 million in shares and $20 million in Treasury bonds. Assume required reserves are 10% of deposits and all remaining assets (if any) are kept as excess reserves, write the balance sheet of Bank of Marienfield.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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