JPMorgan Chase & Co., one of the largest financial institutions in the United States with total assets
Question:
JPMorgan Chase & Co., one of the largest financial institutions in the United States with total assets of nearly $2,266 billion, showed the following items (among others) on its balance sheet at
January 1, 2012 (in millions):
Cash (an asset) ………………. $ 59,602
Total deposits (a liability) … $1,127,806
1. Suppose you deposited $5,000 in the bank. How would your deposit affect each of the bank’s assets, liabilities, and stockholders’ equities? How much would your deposit affect each of your personal assets, liabilities, and owners’ equities? Be specific.
2. Suppose JPMorgan Chase makes a $950,000 loan to Evergreen Hospital for remodeling purposes. How would this loan affect each of the bank’s assets, liabilities, and stockholders’ equities? Be specific.
3. Suppose you borrowed $20,000 from JPMorgan Chase on a personal loan. How would such a transaction affect your personal assets, liabilities, and owners’ equities?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta