Suppose that GRAB Bank is a newly created bank in your hometown. Consider the following transactions: Owners of the bank sold shares of stocks to the public (which includes owners’ equity) amounting to P1,000,000. To fully operate, GRAB Bank purchased physical assets amounting to P500,000 (with approximate useful life of assets of 20 years and salvage value approximated at P100,000). First deposit to the bank (in the form of checkable deposits) was accepted from individuals and business firms amounting to P200,000. Now suppose that the BSP mandated all commercials banks to keep a fraction out of the total deposit valued at 25% Required: Trace the changes in GRAB Bank’s balance sheet, starting with the first transaction up to the last transaction cited above.
Suppose that GRAB Bank is a newly created bank in your hometown. Consider the
following transactions:
Owners of the bank sold shares of stocks to the public (which includes owners’
equity) amounting to P1,000,000.
To fully operate, GRAB Bank purchased physical assets amounting to
P500,000 (with approximate useful life of assets of 20 years and salvage value
approximated at P100,000).
First deposit to the bank (in the form of checkable deposits) was accepted from
individuals and business firms amounting to P200,000.
Now suppose that the BSP mandated all commercials banks to keep a fraction
out of the total deposit valued at 25%
Required: Trace the changes in GRAB Bank’s balance sheet, starting with the first
transaction up to the last transaction cited above.
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