On December 31, a company's records show the following selected accounts and amounts. Use this information to compute net income for the company.

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asked Apr 12, 2024 153k views

1 Answer

Van Tr · Answer 1 · 2024-04-18T03:14:15+0000

The net worth of the bank is calculated by subtracting total liabilities from total assets, which in this case is $220.

Calculating a bank's net worth involves setting up a T-account balance sheet and balancing the assets and liabilities. From the information provided:

To set up the T-account, we list the assets and liabilities of the bank:

The net worth is calculated by subtracting the total liabilities from the total assets:

Net Worth = Assets - Liabilities = $620 - $400 = $220