4. How much is the TOTAL RESERVES? On December 31, 2021, the statement of financial position of FRUITS Company showed the following shareholders' equity accounts: . Ordinary shares, par 50, authorized 100,000 shares, issued 85,000 shares, in treasury 7,500 shares - 4,250,000 12% Preference shares, par 75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares - 1,500,000 ● Share premium in excess of par -> 862,500 Reserve for Treasury shares - 725,000 Treasury ordinary shares - 435,000; Treasury preference shares - 290,000 Retained earnings, unrestricted - 2,168,000 Net income for the year - 762,000 Cash dividends declared - 194,000; 2 years in arrears, current year is not yet included

Definition Definition Capital reserves held by banks or financial institutions over and above the reserves that are required to be maintained by the regulator toward its liabilities and for internal controls. For commercial banks, excess reserve is the amount over the standard reserve as decided by the central bank. These excess reserve funds are available in the form of cash and cash equivalents.