with the following term:
Mortgages: 250 standard 30-year, fixed-rate with a nominal annual rate of 3.5% each for $200,000,
Commercial loan:5-year loan, simple interest paid monthly at 1.0% per month
The bank also purchased $40 million in 30 -day T-bills. The T-bills were trading at $990.099 for a $1,000 face value. days, from (9)/(2) to (9)/(30) ). The required yield on a discount basis was 3.5%. $100,000 and the bank was in the 35% tax bracket. The bank had not engaged in any off-balance-sheet activities.
The following accounting entries record these cash flow transactions.
Accounting entries for mortgages and loan.
Accounting entries for T-bills.
Accounting entries for fed funds loan.
Question: What was the dollar amount of excess reserves on the balance sheet as of September 30, 2020?
$71,045.09093
$38,917.454.20
$37,114,626.79
$56,417,454.21
Umpqua Bank started its frst day of operations with $10 million in capital on September 1,2020.$180 million in checkable deposits was received.The bank invested in a $80 million commercial loan and $50million mortgages with the following term
Mortgages:250 standard30-year,fixed-rate with a nominal annual rate of 3.5%each for $200.000 Commercial loan5-year loan,simple interest paid monthly at 1.0% per month
The bank also purchased $40 million in 30-day T-bills.The T-bills were trading at $990.099 for a $1,000 face value
days,from 9/2 to 9/30.The required yield on a discount basis was 3.5%
$100.000 and the bank was in the 35% tax bracket.The bank had not engaged in any off-balance-sheet activities. The following accounting entries record these cash flow transactions. Accounting entries for mortgages and loan.
Debit
Cash
$1,024,522.34Interest income from mortgages Reduction in mortgage loan balance Interest income from commercial loan
$145,833.33 $78,689.01 $800,000.00
Accounting entries for T-bills.
Debit
Credit
Cash
$40.400.000.40|T-bills
$40,000,000.00 $400,000.40
Interest income from T-bills
Accounting entries for fed funds loan
Debit
Credit
Fed funds borrowed Interest expense
$2,500,000.00Cash $7,068.54
$2,507,068.54
on the balance sheet as of September 30,2020
O$71.045.090.93
O$38917454.20
O$37,114,626.79
O $56,417,A54.21