1. What are the actual reserves of the bank? Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar. 2. What are the required reserves of the bank? Note: do not use a comma or dollar sign in your answer, and round to the nearest dollar. 3. What are the excess reserves of the bank?
Q: give the journal entry received a promissory note in payment of an account.
A: The journal entry keeps the records of day to day transactions of the business as debit one account…
Q: Income Statements and Firm Performance: Variable and AbsorptionCostingJellison Company had the…
A: An income statement is a statement that summarizes a company's profits and costs. It also displays…
Q: What is true of budgets?
A: Budget: Budget is an estimation of revenue and expenses over a specific period of time. It's a…
Q: MKD Company's quality cost report is to be based on the following data: Test and inspection of…
A: The question is related to Quality Cost. The quality cost is classified into two 1. Cost of…
Q: Company XYZ has 6 standard products from stainless steel and brass. The company’s most popular…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: area of the business that operates 24/7 , synthetic rubber, carbon black, oils, an ber for making…
A: The tax on cash outflow would result in savings in tax and hence it would result in a decrease in…
Q: How much is the total cash outflows from investing activities?
A: Total cash outflows from investing activities -15200000 (Option A)
Q: Pete’s Petroleum, Inc., an SEC registrant with a calendar year-end, is in the business of…
A: 1. Expected Future Expenditure Expenditure Probability Amount…
Q: not at all. Consider each situation independently. Situation Impact on audit risk In year…
A: Audit refers to reviewing and evaluating of companies accounts to determine the accuracy and…
Q: Newman Co. purchased CNC router cutting and engraving machinery at a cost of $320,000 in January…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: righ real rubber, synthetic rubber, carbon black, oils pus blend of rubber for making tires (rubber…
A: The tax on cash outflow would result in savings in tax and hence it would result in a decrease in…
Q: P600,000. As a result of a restructuring agreement on Januar note payable at P6,000,000 and accrued…
A: Accounting of Loan Restructuring of Loan
Q: 3. Enter the following in the personal accounts (i.e. the creditor and debtor accounts) only. Do not…
A: Debtors are those persons or parties which have received goods means bought goods from the company…
Q: Issue 5,0 s102.50 per share nal shares of preferred stock for 1-Mar 1-Mar Issue 100,000 additional…
A: I am answering the question number 12 as specifically asked by the student. Common shares are…
Q: Times interest earned Averill Products Inc. reported the following on the company’s income…
A: Formula: Times Interest Ratio = Income before Interest and tax/ Interest Expense Times Interest…
Q: Sophie Gowna, 47 years old, works for an Ontario company with a Bi-weekly pay cycle. She earns $18.5…
A: Pensionable earnings refer to those earnings which are useful to evaluate the pension contributions…
Q: 18. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8%…
A: GIVEN The appropriate WACC of a firm is 6.43% With risk-free rate of 4 % market return of 8%…
Q: Lucky Food Stores wishes to prepare a cash budget for the month of April, 2022. Total Sales for…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: On July 1, 2020, Oliver Construction Corp. contracted to build an office building for Annalise Inc.,…
A: Percentage Completion Method: The percentage of completion may be calculated by dividing current…
Q: On December 31, 2020 Mega Nhon Company changed its method of accounting for inventory from weighted…
A: Basic Closing inventory increase the gross profit which in turn increase the net profit. Tax is…
Q: Net income ? P 122,500 219,000 60,000 60,000 Accounts Payable Accounts Receivable Accumulated…
A: Formula: Net income = Revenues - Expenses
Q: Devern Assurance Company provides both property and automobile insurance. The projectedincome…
A: Operating income, in its most basic form, demonstrates your company's capacity to create earnings…
Q: 2021 2020 ccounts receivable $775000 $676000 ess: Allowance for doubtful accounts 74000 66000…
A: Calculation of Average collection period Average collection period = 365 days/ Accounts receivable…
Q: Miracle Corporation reports the following amounts in its December 31, 20XF income statement: Sales…
A: The earnings per share is calculated as net income divided by average number of shares outstanding.
Q: Shown below is the sales forecast for Cooper Inc. for the first four months of the coming year Apr…
A: Cash inflows in March = cash sales + cash collected in month of march
Q: A family friend has asked your help in analyzing the operations of three anonymous companies…
A: Formulas: Net operating income = Average operating assets x ROI Dollar amount = Average operating…
Q: andard material cost per kg of raw material is $8.75. Standard material allowed per unit is 6 Kg.…
A: Standard cost per output unit = Standard quantity × Standard price
Q: impopo Ltd issued 200 000% debentures on 1Jan 2010. The debentures were issued at R7 each and are…
A: Whenever debenture issued at Par and reedemable at Premium then such an excess amount can be treated…
Q: In April Leafon Landscapes' direct labor was 60% of the conversion cost. If the manufacturing…
A: Conversion cost = Direct labor + Manufacturing overhead
Q: QUESTION 2 Huxley Company has 264277 shares of common stock authorized, 153543 issued, and 71672…
A: DIVIDEND PAID : = OUTSTANDING COMMON SHARES X DIVIDEND PER SHARE
Q: On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share…
A: Retained earnings are the earnings that have been accumulated over a period of time. The ending…
Q: New Gadgets, Incorporated, currently pays no dividend but is expected to pay its first annual…
A: The price of the stock at the end of 6 years is given by: =Dividend at the end of year 7/(Required…
Q: Salary Expense 70,500 Accounts Receivable 90,000 Accumulated Depreciation-Equipment 14,800 Supplies…
A: Formula: Net income = Revenues - Expenses
Q: Q/3 The Municipality Directorate has purchased vehicles in the amount of (120) million Iraqi dinars…
A: Accounting for Depreciation Constant Ration Method of Depreciation
Q: Use the following to answer questions 27 – 34 Miracle Corporation reports the following amounts in…
A: Answer 27) Calculation of Gross Profit Gross Profit = Net Sales – Cost of Goods sold Gross Profit =…
Q: the options 60 3,600 Inventory Inventory Accounts Payable 600 1,200 Cash 600 Cash 2,940 Sales…
A: June 1 Inventory A/c dr. $3600 (30shoes * $120) To Accounts payable.…
Q: You are the Accountant for Ching Wei Tai, a sole trader business operating downtown, Kingston. The…
A: Cash Debit Credit Date Particulars Amount Date Particulars Amount Dec'3 Ching Wei Tai,…
Q: Light Inc. had the following activities during the current year: Acquired 4,000 shares of Dark Inc.…
A: Cash inflows from operating activities mean the cash received in respect of carrying out the daily…
Q: The actual information pertains to the third quarter. As part of the budgeting process, the Duck…
A: Static budget of variable cost for 19000 units = $185,000
Q: Monetary assets include cash, accounts receivable and inventory. O accounts receivable and property,…
A: A monetary assets are those assets which can easily converted into Fixed or determinable units…
Q: Problem 7. Consider the following data about Rock N' Roses Corp: Current ratio, 0.50; Quick ratio,…
A: Current ratio = Current Assets Current liabilities 0.5 = Current Assets…
Q: TRUE OR FALSE? The debit balances in suppliers' accounts should be netted against accounts payable.
A: Accounts payable is the amount owed by the business entity towards the suppliers in respect of the…
Q: The total interest paid on $46,000, ten-year, 6 percent bonds that are issued at 98 is a. $28,520.…
A: Total interest paid = Interest paid + Discount on bonds where, Discount on bonds = Face value of…
Q: Additional Information for Journal Entries Brian Burns records accruals for utilities expense as…
A: LIFO (last in, first out) is an inventory management system. Under LIFO, the costs of the most…
Q: CT Inc. is evaluating a project that would cost P8 million at t = 0. There is a 50% chance that the…
A: Capital Budgeting Discounted Cash Flow Method
Q: Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as…
A: when company earns the profit then it was dividend to its shareholders as a reward for their…
Q: Southwest Components recently switched to activity-based costing from the department allocation…
A: T-accounts also known as Ledger account are the posting of transaction from journal entries.…
Q: How do S Corporations report separately separately stated items?
A: The income losses, gains, deductions, and credit are passed by the corporation S to its shareholders…
Q: Using the total cost method what price should Pinkin charge?
A: Fixed costs: Cost which is not affected by change in production Variable cost: Per unit Variable…
Q: Wisconsin also paid $32,600 to a broker for arranging the transaction. In addition, Wisconsin paid…
A: Introduction:- A corporation's shares are units of equity ownership. Shares serve as a financial…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose that a bank holds cash in its vault of $1.4 million, short-term government securities of $12.4 million, privately issued money market instruments of $5.2 million, deposits at the Federal Reserve banks of $20.1 million, cash items in the process of collection of $0.6 million, and deposits placed with other banks of $16.4 million. How much in primary reserves does this bank hold? In secondary reserves?Beleaguered State Bank (BSB) holds $200,000,000 in deposits and maintains a reserve ratio of 10%, which also is the reserve requirement. On paper, write the T account for BSB and use it to answer the rest of this question. Now suppose that BSB's largest depositor withdraws $10,000,000 from her account one day. On paper, show the effect of this on the T account. How many dollars of cash reserves does BSB need to raise to be allowed to open for business the next morning?Cambria Bank is holding $9 million in reserves, $12 million in government bonds and $10 million in low risk mortgage loans. Out of the $30 million in customers' deposits, Cambria holds $15 million in the form of certificates of deposit. Determine the bank's net worth. Identify the criteria for classifying a bank as healthy or unhealthy and determine which applies to Cambria Bank in these circumstances.
- Assume that the following balance sheet portrays the state of the banking system. The banks currently have no excess reserves. Assets Liabilities and Net Worth (Billions of Dollars) Total reserves 5 Checkable deposits 100 Loans 45 Securities 50 Total 100 Total 100 What is the required reserve ratio? 25% 40% 10% 5% Suppose that the Federal Reserve (the "Fed") buys $8 million of bonds from a bond dealer, who immediately deposits the funds in her checking account. What is the initial impact of this transaction? Checkable deposits rise by $8 million, and the banking system's holdings of securities rise by $8 million. The banking system's holdings of securities rise by $8 million, and the banking system's total reserves fall by $8 million. The banking system's holdings of securities fall by $8 million, and the banking system's total reserves rise by $8 million. Checkable deposits rise by $8…A bank currently holds $105 million in transaction deposits subject to legal reserves but hasmanaged to enter into sweep account arrangements affecting $55 million of these accounts.Given that the bank must hold 3 percent legal reserves up to $47.8 million of transaction depositsand 10 percent legal reserves on any amount above that, how much has this bank reduced its totallegal reserves as a result of these sweep arrangements?Bank L's balance sheet(in millions) is provided below.The bank does not have any off-balance-sheet activity. Please calculate the total risk-based capital ratio of this bank Assets Liabilities and Equity Cash $20 Deposits $980 Treasury bonds(risk-weight=0) $40 Subordinated debentures $25 Mortgate loans(risk-weight=50%) $600 Common Stock $45 Business Loans $430 Retained earnings $40 Total assets $1090 Total liabilities and equity $1090
- SaKanya Company provided the following information on December 31, 2020: Cash in Bank (net of bank overdraft of P500,000) P5,000,000, Petty cash fund (unreplenished PCF P10,000) 50,000, Notes Receivable P4,000,000. Accounts receivable (net of customers credit balance of P1,500,000) P6,000,000, Inventory P3,000,000, Bond Sinking fund P3,000,000, Total current assets P21,050,000. Accounts payable (net of suppliers debit balances of P1,000,000) P7,000,000, Notes payable P4,000,000, Bonds payable due June 20, 2021 P3,000,000, Accrued expenses P2,000,000. Total current liabilities P16,000,000. What amount should be reported as total current assets on December 31, 2020?Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 20%. The Federal Reserve buys a government bond worth $750,000 from Lorenzo, a customer of First Main Street Bank. He deposits the money into his checking account at First Main Street Bank. Complete the following table to reflect any changes in First Main Street Bank's balance sheet (before the bank makes any new loans). Assets Liabilities Complete the following table to show the effects of the new deposit on excess and required reserves, assuming a required reserve ratio of 20%. Hint: If the change is negative, be sure to enter the value as a negative number. Amount Deposited Change in Excess Reserves Change in Required Reserves (Dollars) (Dollars) (Dollars) 750,000 Now, suppose First Main Street Bank loans out all of its new excess reserves to Juanita, who immediately…Bank L's balance sheet(in millions) is provided below.The bank does not have any off-balance-sheet activity. Please calculate Tier 1 risk-based capital ratio of the bank. Assets Liabilities and Equity Cash $20 Deposits $980 Treasury bonds(risk-weight=0) $40 Subordinated debentures $25 Mortgate loans(risk-weight=50%) $600 Common Stock $45 Business Loans $430 Retained earnings $40 Total assets $1090 Total liabilities and equity $1090
- The Valorant Company has the following items in its general ledger: Petty cash fund- $5,000; Checking account, Bank of Korea- $290,000; Cash fund legally restricted for short-term borrowings, Bank of Korea- $100,000; Checking account, BPI Bank- $(170,000); Checking account, Metrobank- $49,500. The amount of cash that should be reported in Valorant's balance sheet as a current asset is:A local bank policy is to hold 12.77% of its deposits as reserves. With current deposits of $8 million and excess reserves of $200,000, calculate the necessary reserve on a fresh deposit of $30,000. Required reserve for new deposit =$ (The answer should be rounded to Zero (0) decimals without the $ sign.)Normanby Bank has the following balance sheet. Assets ($ million) Liabilities and equity ($ million) Treasury notes 85 Deposits 125 Loans 115 Interbank funds 55 Equity 20 Total assets 200 Total liabilities and equity 200 One of Normanby Bank’s wholesale customers decides to make an immediate deposit withdrawal of $15 million. To fund this withdrawal request, the bank adopts a liability liquidity management approach via the interbank funds market. Which of the following statements is CORRECT? Select one: a. After the transactions, the bank has 140m in deposits, 40m in interbank funds, and total assets remain unchanged. b. After the transactions, the bank has 110m in deposits, 40m in interbank funds, and 170m in total assets. c. After the transactions, the bank has 125m in deposits, 70m in interbank funds, and 215m in total assets. d. After the transactions, the bank has 110m in deposits,…