The balance sheet for the newly formed Last National Bank is shown below. Reserves listed on the balance sheet are reserves on deposit at the Federal Reserve. Cash is vault cash held at the bank. Assets Cash Reserves Property Last National Bank Balance Sheet 1 Liabilities and net worth Assets Cash Reserves Property $ 8,000 Checkable deposits 140,000 Stock shares 295,000 $ Instructions: Enter your answers as a whole number. a. Suppose a depositor at the bank writes a check for $19,000 to pay a contractor for some remodeling work done on her home. The contractor deposits the check in his bank (which is a different bank). What will Last National Bank's balance sheet look like after the check clears? Record the values in the table below Last National Bank Balance Sheet 2 Liabilities and net worth Checkable deposits Stock shares 138.000 305,000 b. If the reserve requirement is 12 percent, what is the total amount of excess reserves held by Last National Bank after the check clears?
The balance sheet for the newly formed Last National Bank is shown below. Reserves listed on the balance sheet are reserves on deposit at the Federal Reserve. Cash is vault cash held at the bank. Assets Cash Reserves Property Last National Bank Balance Sheet 1 Liabilities and net worth Assets Cash Reserves Property $ 8,000 Checkable deposits 140,000 Stock shares 295,000 $ Instructions: Enter your answers as a whole number. a. Suppose a depositor at the bank writes a check for $19,000 to pay a contractor for some remodeling work done on her home. The contractor deposits the check in his bank (which is a different bank). What will Last National Bank's balance sheet look like after the check clears? Record the values in the table below Last National Bank Balance Sheet 2 Liabilities and net worth Checkable deposits Stock shares 138.000 305,000 b. If the reserve requirement is 12 percent, what is the total amount of excess reserves held by Last National Bank after the check clears?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education