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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Connect Problem CP 35-10 (algo)
The belance sheet for the newly formed ACME Bank is shown below.
ACME Bank Balance Sheet 1
Liabilities and net
worth
eBook
Assets
Checkable deposits
Reserves
132,000
127,000
244,000
Reference
Property
239,000 Stock shares
Instructions: Enter your answers as a whole number.
a. Toshi, the owner of Toshi's Produce, has obtained a bank loan of $52,000 to buy a new delivery truck. The amount of
the loan will be added to the available balance of Toshi's checking account. What will ACME Bank's balance sheet look
like immediately after the loan has been finalized? Fill in the values in the table.
ACME Bank Balance Sheet 2
Liabilities and net
worth
Checkable deposits
Assets
Reserves
Loans
Stock shares
Property
b. Toshi then writes a check from his checking account to purchase the delivery truck from Bob's Motors for the entire
amount of the loan, $52,000. Bob's Motors deposits the check in its checking account at XYZ Bank. What will ACME
Bank's balance sheet look like after the check has been processed? Fl in the values in the table below.
ACME Bank Balance Sheet 3
Liabilities and net
worth
Checkable deposits
Stock shares
Assets
Reserves
Loans
Property
c After all transactions are complete, how much in additional loans can ACME Bank make to its other customers?
Assume the reserve requirement is 15 percent"
Transcribed Image Text:4
Connect Problem CP 35-10 (algo)
The belance sheet for the newly formed ACME Bank is shown below.
ACME Bank Balance Sheet 1
Liabilities and net
worth
eBook
Assets
Checkable deposits
Reserves
132,000
127,000
244,000
Reference
Property
239,000 Stock shares
Instructions: Enter your answers as a whole number.
a. Toshi, the owner of Toshi's Produce, has obtained a bank loan of $52,000 to buy a new delivery truck. The amount of
the loan will be added to the available balance of Toshi's checking account. What will ACME Bank's balance sheet look
like immediately after the loan has been finalized? Fill in the values in the table.
ACME Bank Balance Sheet 2
Liabilities and net
worth
Checkable deposits
Assets
Reserves
Loans
Stock shares
Property
b. Toshi then writes a check from his checking account to purchase the delivery truck from Bob's Motors for the entire
amount of the loan, $52,000. Bob's Motors deposits the check in its checking account at XYZ Bank. What will ACME
Bank's balance sheet look like after the check has been processed? Fl in the values in the table below.
ACME Bank Balance Sheet 3
Liabilities and net
worth
Checkable deposits
Stock shares
Assets
Reserves
Loans
Property
c After all transactions are complete, how much in additional loans can ACME Bank make to its other customers?
Assume the reserve requirement is 15 percent
Expert Solution
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