Answer:
Explanation:
The preparation of the simple balance sheet of assets and liabilities is presented below:
Banc One
Simple balance sheet
Liabilities Amount Assets Amount
Deposits $1,000,000 Reserves $200,000
Cash $800,000
Total liabilities $1,000,000 Total assets $1,000,000
The reserve would be
= $1,000,000 × 2%
= $200,000
And the remaining balance is transferred to the cash balance
= $1,000,000 - $200,000
= $800,000
