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What is the amount of total assets after all transactions have been recorded?

User Humansg
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Final answer:

A bank's total assets can be calculated by setting up a T-account balance sheet. In this example, the bank has deposits of $400, reserves of $50, government bonds worth $70, and loans of $500. The total assets after all transactions have been recorded is $620, and the bank's net worth is $220.

Step-by-step explanation:

A bank's total assets after all transactions have been recorded can be calculated by setting up a T-account balance sheet. In this case, the bank has deposits of $400, reserves of $50, government bonds worth $70, and loans of $500. The T-account balance sheet would look like this:

Assets:

  • Cash and reserves: $50
  • Loans: $500
  • Government bonds: $70

Liabilities:

  • Deposits: $400

We can calculate the bank's net worth by subtracting its total liabilities from its total assets:

Total assets = $50 + $500 + $70 = $620

Total liabilities = $400

Net worth = Total assets - Total liabilities = $620 - $400 = $220

Therefore, the amount of total assets after all transactions have been recorded is $620, and the bank's net worth is $220.

User Trobol
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