Final answer:
The question requires understanding and interpreting a balance sheet. Blue Company's assets and liabilities are stated, which change when business plans like Singleton Bank's are altered. A SELF-CHECK question calculation gives an accounting profit from provided financial figures.
Step-by-step explanation:
The question pertains to interpreting financial information from a balance sheet for Blue Company before making any adjustments. The following information given reveals that the company has assets made up of reserves, bonds, and loans, while the liabilities consist of deposits and equity. When a company like Singleton Bank changes its business plan, it affects the balance sheet, as depicted in the hypothetical figures presented. Such changes usually involve alterations in the asset and liability mix of the bank, as seen with the reserves and loans to Hank's Auto Supply contrasted with the deposits.
To answer the SELF-CHECK QUESTIONS segment about a firm's accounting profit, we would subtract total expenses (labor, capital, and materials) from sales revenue. Here, the firm had sales revenue of $1 million and total expenses of $950,000 ($600,000 + $150,000 + $200,000), resulting in an accounting profit of $50,000.