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?

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
Assets
Cash
Last National Bank Balance Sheet 1
Liabilities and net worth
Reserves
Property
$
8,000 Checkable deposits
140,000 Stock shares
295,000
S
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?
Transcribed Image Text: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 Assets Cash Last National Bank Balance Sheet 1 Liabilities and net worth Reserves Property $ 8,000 Checkable deposits 140,000 Stock shares 295,000 S 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?
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