Question
the question is in the photos, just need to know if cash, deposits, equity, building and loan to others are one of these 3,
assets, liability or equity.
When a new bank with equity of 5 million dollars opened in the small town of Geckotopia, all their constituents were excited that they finally had a place that could keep their money. The bank purchased a building for 5 million dollars. The citizens immediately deposited $500 million into the bank. Their cash reserve is 10% of their deposits and the rest the bank loaned out. Throughout the year, the new bank earns 50 million dollars in Interest Income and pays out Interest Expense of 25 million dollars. Salary and upkeep for the year totaled 3 million dollars. The upkeep maintains the initial value of the building. Taxes to the state and federal government total 10 million dollars. The bank was overwhelmed by the amount of deposits at beginning of the year, and did not accept any new deposits throughout the year and the next year. Any income they made the first year, thev kent in cash Cash Deposits Equity Building Loans to others Total Amount Assets Liability Liability Equity Liability
Explanation / Answer
Item Head Cash Assets Deposit Assets Equity Equity Bulding Assets Loans to other Assets
