Create a Balance Sheet and Income Statement for a bank. Below are accounts and balances for 2013 year-end of ABC Bank, Inc. Note that the Retained Earnings account has not yet been adjusted for 2013 net income and dividends so you will have to compute the year-end balance in Retained Earnings for the Balance Sheet.
In $000's
Cash & due from banks 21,860
Common stock 9,136
Dividends paid [2] 20,010
Employee expenses 28,804
Fed. Funds and reverse repurchases 137,313
Fee income 23,930
Gain from security trading 3,064
Goodwill & other assets 141,341
Gross loans and leases 846,833
Income tax expense 9,104
Interest expense 5,161
Interest income 48,391
Loan loss allowance 17,060
Long-term bonds payable 127,379
Miscellaneous other income 15,862
Other borrowed funds 57,175
Other expense 21,594
Other liabilities 76,668
Preferred stock 12,883
Provision for loan losses 7,217
Retained Earnings [1] 77,733
Securities 292,681
Surplus 59,802
Total deposits 1,002,835
1. Prepare a formal Income Statement (Report of Income) and Balance Sheet (Report of Condition) for the bank using Excel. You do not need to break down assets or liabilities into subsections. Note that all values are in thousands of dollars. You can skip adding the zeroes if you note the values correctly.
2. Go to sec.gov and click on "Filings" and you get a drop-down box. Click on "Company Filings Search." In the Fast Search box (right side), type in ALL to get the SEC filings for Allstate Corporation (primarily an insurance company). Find the most recently filed 10K (interactive data) and then click on "financial statements" and open the firm's Consolidated Balance Sheet and also the firm's Consolidated Statement of Income. Observe the differences between the statements of an insurance company and those of a bank.