Question

Current assets $ 150 current liabilities $ 85 long-term assets 550 long-term debt 255 other liabilities 120 equity 240 $ 700 $ 700?

Answer 1

A bank's T-account balance sheet shows its assets and liabilities. Assets include reserves, bonds, and loans, while liabilities include deposits and net worth. The net worth can be calculated by subtracting the liabilities from the assets.

Step-by-step explanation:

A bank's T-account balance sheet can be set up to show its assets and liabilities. In this case, the bank has deposits of $400, reserves of $50, government bonds worth $70, and loans of $500. The assets would be listed on the left side of the T-account, and the liabilities would be listed on the right side.

Assets:
Reserves: $50
Bonds: $70
Loans: $500
Total Assets: $620

Liabilities:
Deposits: $400
Net Worth: $220
Total Liabilities and Net Worth: $620

The bank's net worth can be calculated by subtracting the liabilities from the assets. In this case, $620 - $400 = $220.