Do you think banks benefit society? if so, how and why?

Explanation:

Why is easy. To make money. I mean increase wealth not like the Fed which literally does make money - to the tune of trillions per year.

Good Banks do serve a useful purpose. They take the money that savers put on deposit and loan it out to businesses to increase their net worth or individuals who want things like condos or houses.

The economy benefits by money circulating. The individuals benefit by investing in real estate and other tangibles to make them wealthier.

Not all banks especially recently, are honest. It is creating a lot of trouble.

No Journal entry. Disclose contingent liability of  $794000 in Notes to Financial Statements

Explanation:

A Provision is recognized when it is Probable ( Probabity > 50%) that there would be an outflow of economic resources and that a reliable estimate can be made - IAS 37

Since there  is a 45% chance of losing, it is not probable to recognize a provision. Thus a Contingent liability is recognized instead

Contingent Liabilities are only disclosed if the amounts are significant and are not shown on the face of the financial statement (no journal entry)